Law360 Canada ( July 28, 2021, 1:43 PM EDT) -- Appeal by the Crown from the dismissal of its appeal by the Court of Appeal of Alberta from the dismissal of its motion to vary an Initial Order. The respondent Canada North Group and six related corporations initiated restructuring proceedings under the Companies’ Creditors Arrangement Act (“CCAA”). They requested the creation of three priming charges that included an administration charge in favour of counsel, a monitor and a chief restructuring officer, a financing charge in favour of an interim lender, and a directors’ charge protecting their directors and officers against liabilities incurred after the commencement of the proceedings. The respondents’ debt included unremitted employee source deductions and GST. The CCAA judge made an Initial Order that the priming charges were to rank in priority to all other security interests and were not to be limited or impaired in any way by the provisions of any federal or provincial statutes. The Crown applied to vary the Initial Order on the basis that the priming charges should not take priority over the deemed trust created by s. 227(4.1) of the Income Tax Act (“ITA”) for unremitted source deductions. The motion judge dismissed the Crown’s motion on the basis that the security interest created by s. 227(4.1) of the ITA could be subordinated to court-ordered super-priority charges. The majority of the Court of Appeal agreed....