Upstream companies will be harder to finance after important SCC decision

The Calgary Herald has used insights of senior associate Jeremy Opolsky in an editorial written on the back of the precedent-setting Supreme Court decision released January 31.

The decision in Orphan Well Association v. Grant Thornton Ltd. overturned the court of Appeal of Alberta decision in allowing the appeal of the Orphan Well Association and the Alberta Energy Regulator against Grant Thornton Limited, the receiver and trustee in bankruptcy for oil and gas producer Redwater.

The editorial takes a supportive stance on the decision and says “it has always seemed profoundly unfair that insolvent petroleum producers could dump their environmental liabilities onto other companies and Albertans without consequence.”

However the article also acknowledges the ruling’s effect on some companies to borrow money. It called on Jeremy’s insights to back that up.

“It is going to be harder to finance these upstream companies, because secured creditors will have to look at a greater possibility of a lack of recovery in the future,” Jeremy said.

We have previously written on case when the Court of Appeal of Alberta released its decision in April 2017. You can read our summary of the case until that point in "Redwater appeal dismissed in favour of creditors."

You can learn more about our Appeals Practice by heading to the practice page.