Companies’ Creditors Arrangement Act (R.S.C., 1985, c. C-36)

Act current to 2014-09-01 and last amended on 2013-04-01. Previous Versions

Marginal note:Assignment of agreements
  •  (1) On application by a debtor company and on notice to every party to an agreement and the monitor, the court may make an order assigning the rights and obligations of the company under the agreement to any person who is specified by the court and agrees to the assignment.

  • Marginal note:Exceptions

    (2) Subsection (1) does not apply in respect of rights and obligations that are not assignable by reason of their nature or that arise under

    • (a) an agreement entered into on or after the day on which proceedings commence under this Act;

    • (b) an eligible financial contract; or

    • (c) a collective agreement.

  • Marginal note:Factors to be considered

    (3) In deciding whether to make the order, the court is to consider, among other things,

    • (a) whether the monitor approved the proposed assignment;

    • (b) whether the person to whom the rights and obligations are to be assigned would be able to perform the obligations; and

    • (c) whether it would be appropriate to assign the rights and obligations to that person.

  • Marginal note:Restriction

    (4) The court may not make the order unless it is satisfied that all monetary defaults in relation to the agreement — other than those arising by reason only of the company’s insolvency, the commencement of proceedings under this Act or the company’s failure to perform a non-monetary obligation — will be remedied on or before the day fixed by the court.

  • Marginal note:Copy of order

    (5) The applicant is to send a copy of the order to every party to the agreement.

  • 1997, c. 12, s. 124;
  • 2005, c. 47, s. 128;
  • 2007, c. 29, s. 107, c. 36, ss. 65, 112.

 [Repealed, 2005, c. 47, s. 128]

Marginal note:Critical supplier
  •  (1) On application by a debtor company and on notice to the secured creditors who are likely to be affected by the security or charge, the court may make an order declaring a person to be a critical supplier to the company if the court is satisfied that the person is a supplier of goods or services to the company and that the goods or services that are supplied are critical to the company’s continued operation.

  • Marginal note:Obligation to supply

    (2) If the court declares a person to be a critical supplier, the court may make an order requiring the person to supply any goods or services specified by the court to the company on any terms and conditions that are consistent with the supply relationship or that the court considers appropriate.

  • Marginal note:Security or charge in favour of critical supplier

    (3) If the court makes an order under subsection (2), the court shall, in the order, declare that all or part of the property of the company is subject to a security or charge in favour of the person declared to be a critical supplier, in an amount equal to the value of the goods or services supplied under the terms of the order.

  • Marginal note:Priority

    (4) The court may order that the security or charge rank in priority over the claim of any secured creditor of the company.

  • 1997, c. 12, s. 124;
  • 2000, c. 30, s. 156;
  • 2001, c. 34, s. 33(E);
  • 2005, c. 47, s. 128;
  • 2007, c. 36, s. 65.