Author(s):
Paul Morassutti, Tracy Sandler, Matthew Ritchie
Feb 28, 2024
Elevated interest rates are affecting businesses in every sector of the economy, but perhaps none more so than real estate. The number of insolvencies impacting different real estate classes across Canada has increased over the last few months, and banks are upping their loan-loss reserves in the expectation of continued mortgage defaults and restructurings.
Alongside Al Hutchens, a managing director with Alvarez & Marsal, one of Canada’s leading turnaround and restructuring advisors, Osler partners Tracy Sandler (Insolvency and Restructuring), Paul Morassutti and Matthew Ritchie (Real Estate) recently explored the real estate-specific issues that parties are likely to encounter in an insolvency. They also provided some helpful tips on how owners, tenants and landlords can navigate these issues to achieve the best possible outcome in a challenging time.
Topics discussed during their conversation include
- legal options for restructuring or winding down business operations
- benefits and requirements of a Companies’ Creditors Arrangement Act (CCAA) filing
- what’s involved in the CCAA transaction process
- how cross-border elements can affect proceedings
- relevant provisions to consider when purchasing, assigning or taking assignment of a lease, including permitted uses, prohibited uses, personal rights and continuous use obligations
- considerations when purchasing real property in an insolvency
Watch the full webinar