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[BANKRUPTCY, INSOLVENCY & REHABILITATION PROCEEDINGS IN CANADA]
RVO structure? While this test has been set out, the body of law firmly establishing the conditions under which the court might refuse a RVO is in its relative infancy and still developing. Environmental Obligations and Priorities In 2019 the Supreme Court of Canada released its decision in the case of Orphan Well Association v. Grant Thornton Ltd. , which held that certain environmental remediation obligations of an insolvent entity can and should be prioritized over and above the rights of secured creditors in the context of a closed oil and gas operation. More recently, the court in the Province of Alberta has issued several decisions that have potentially expanded the context in which such a super-priority might be found to apply. At the time of this update, however, there are active appeals in this area and so further clarity on the law in this area may be expected in the near future.
ILN Restructuring & Insolvency Group – Bankruptcy, Insolvency & Rehabilitation Series
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