Grant Forest Products Inc. v. The Toronto-Dominion Bank
CCAA Stay Lifted: Bankruptcy Priority Trumps Pension Trust
Summary
This is an appeal to the Court of Appeal from a CCAA judge's transition order that lifted a stay of proceedings and ordered the debtor companies into bankruptcy. The Superintendent of Financial Services appealed, arguing that wind-up deemed trusts under the Pension Benefits Act had priority over secured creditors' claims. The CCAA judge had ordered the companies into bankruptcy without requiring payment of the pension deficits. The Court of Appeal dismissed the appeal, holding that once bankruptcy was ordered, the federal Bankruptcy and Insolvency Act scheme rendered the provincial deemed trusts inoperative.
Outcome
appeal dismissed
Key Factors
- ccaa proceedings
- wind up deemed trust
- federal paramountcy
- bankruptcy order
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This summary was written by AI from the published decision and its headnote. It is not an official version of the decision; read the full text on CanLII before relying on it. This is legal information, not legal advice. Ontario Severance is an educational tool. If you are facing a serious employment law matter, consult with a qualified employment lawyer in Ontario.