PROCEEDINGS - Appeals and judicial review

Law360 Canada (August 2, 2022, 9:03 AM EDT) -- Appeal by the Trustee in bankruptcy from the decision allowing the Perpetual Defendants’ second summary dismissal application. The Trustee filed a statement of claim against the respondents, alleging, among other things, that an asset transaction was void under section 96 of the Bankruptcy and Insolvency Act. The Trustee alleged that the recipient company was insolvent when assets were transferred at undervalue, or the recipient company was rendered insolvent by the transfer at undervalue. The transferred assets were licensed petroleum assets, mainly shallow gas wells. Almost two-thirds of them were shut-in or abandoned, such that the associated end-of-life obligations were significant. The Perpetual Defendants twice applied to the same chambers justice to have the section 96 claim dismissed. They were successful on the second application. The Trustee took the position that the chambers judge erred in failing to fully consider the impact of end-of-life obligations on the value of certain assets. The trustee also argued that the second chambers application was an abuse of process. The respondents submitted that the chambers judge’s legal treatment of the end-of-life obligations was correct....
LexisNexis® Research Solutions

Related Sections