Canadian Insolvency Blog

Posted on March 29, 2007 by Chris Laughton

David Wood's new blog, Insolvency Consultant and Bankruptcy Trustee, offers a Canadian perspective on the insolvency and restructuring world. Visit it and see what you think! David's firm, Boale, Wood & Company, is an insolvency boutique based in Vancouver.

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Comments (4) Read through and enter the discussion with the form at the end
Cameron Smith - July 12, 2007 9:53 PM

I am wondering if you could help me to understand the major differences between Canadian and UK (England & Wales) insolvency law and how they practically apply.

Thanks,

Cam

Chris Laughton - July 16, 2007 11:23 AM

Cam

Your question could take a whole book to answer and I'm interested to know why you ask and what you really need. Why not contact me offline through the link/details on this page?

However, taking the plunge as briefly as possible (and working on the assumption that you know something of Canadian insolvency law, failing which you might try David's blog):


  • England & Wales is a single legal jurisdiction - there is no federal/provincial structure;

  • personal bankruptcy and corporate liquidation is broadly similar both sides of the Atlantic;

  • insolvent corporate reorganisations in the UK are often conducted through administrations or company voluntary arrangements, which usually have less court involvement than Canadian reorganisations, I understand; and

  • individual voluntary arrangements are a less restrictive and more consensual alternative to personal bankruptcy in many cases in the UK.


This doesn't even scratch the surface, but I hope gives a general indication. As to practicalities - I suggest they can only really be addressed at a detailed level!

Chris

Mark Trigg - July 1, 2008 9:57 PM

This one has my refused tobe answered in our office, maybe someone out there can help. In the period sometime between 1990 -1994 when i was a t coolege there was a case that i cannot find reported whereby a builder who had undertaken work for an insurance company(prudential i think). He was unable to get his invoice settled so whet to the high court asking that the insurance company be put into liquidation as they were unable to meet their debts as they fell due. The court issued a temp order which prevented the ins. company receiving or making any payments for 7 days - this of course cost the company many £1000's and lots of egg on face. I have a similar scenario but need the name of the case , any ideas?

Chris Laughton - September 7, 2008 12:07 AM

Mark

The case you're thinking of is Cornhill Insurance PLC v. Improvement Services Limited (1986) 1 WLR 114, the leading case where the court refused to grant an injunction to prevent the creditor proceeding with the winding-up petition as the debtor's remedy was to pay the undisputed debt.

It's one reason why big companies take statutory demands and winding-up petitions so seriously.

Chris

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