Timminco Limited (Re)

2012 ONSC 4471 (CanLII)Decided

CCAA: Former CEO Consulting Fees & Disclaimer

Summary

This is a procedural ruling in a Companies' Creditors Arrangement Act (CCAA) proceeding involving a former CEO's claim for consulting fees. The court addressed whether monthly consulting fees owed under a pre-filing agreement constitute stayed pre-filing unsecured claims and whether the company could disclaim the agreement under section 32 of the CCAA. The decision analyzed the nature of the obligations, the equitable treatment of creditors, and the financial hardship to the former CEO.

Outcome

Payments characterized as unsecured pre-filing obligations; disclaimer analysis under CCAA s. 32

Key Factors

  • CCAA pre-filing obligations
  • Consulting agreement disclaimer
  • Section 32 CCAA
  • Financial hardship
  • Equitable treatment of creditors

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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.