June 08, 2009
Like their U.S. counterparts, insolvency and restructuring lawyers at Canada's largest firms have been working around the clock since the winter to keep up with the deluge of major bankruptcy filings hitting Canadian courts.
At least a dozen large Canadian bankruptcies have been filed in 2009 so far under the Companies' Creditors Arrangement Act, Canada's streamlined version of Chapter 11.
In many cases, Canadian lawyers are also serving as Canadian counsel to companies that have filed parallel U.S. bankruptcy court petitions.
For example, Montréal-based AbitibiBowater, North America's largest newsprint maker, filed for bankruptcy protection in April 2009 and won court approval for as much as C$600 million in DIP financing in U.S. bankruptcy court. The company also filed for protection from its Canadian creditors, with the judge in that filing approving a C$100 million DIP loan on May 6. Michael Rotsztain and David Chaikof are representing Toronto-based Fairfax Financial Holdings, a DIP lender and major creditor.
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