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______________________________________________________________________________Stewart McKelveyDoing Business in Atlantic Canadathe Companies’ Creditors Arrangement Act and to make consequential amendments to other Acts wasintroduced as Bill C-55 in the House of Commons. Bill C-55 received Royal Assent on November 25,2005 and became Chapter 47 of the Statutes of Canada, 2005. Further amendments were introduced inBill C-62, An Act to amend the Bankruptcy and Insolvency Act, the Companies’ Creditors ArrangementAct, the Wage Earner Protection Program Act and chapter 47 of the Statutes of Canada, 2005, whichreceived Royal Assent on December 14, 2007, and became Chapter 36, Statutes of Canada, 2007.The Wage Earner Protection Program Act came into force effective July 7, 2008, thereby creating theWage Earner Protection Program (“WEPP”). The WEPP provides for the payment of outstanding wages(including salaries, commissions, compensation for services rendered and, as a result of the 2009 federalbudget, severance pay and termination pay), capped at $3,000, to individuals whose employment isterminated as a result of a bankruptcy or receivership.Trustees and receivers are required to perform numerous duties to support the operation of the programincluding identifying individuals owed wages earned during the six months immediately prior to thebankruptcy/receivership, determining the amount of wages owing to each individual, and providinginformation to the individuals of the existence of the program and respecting payments to be madethereunder.Recent amendments to the BIA which are currently in force include the creation of a super-priority chargefor employees of up to $2,000 for unpaid wages, salaries, commissions or compensation owing from sixmonths prior to the date of the initial bankruptcy event or appointment of a receiver. This super-prioritymay be acted upon in exercising the rights of an employee under the WEPP or by individuals who do notqualify for payment thereunder. The charge attaches to “current assets”, including cash, accountsreceivable and inventory.Other significant amendments to the BIA were not yet in force at the time of writing, and include (but arenot limited to) a provision that only a licensed trustee may be appointed as a receiver either by the courtor under the terms of a security agreement to take control of all or substantially all of the inventory,accounts receivable or other property acquired for or used in relation to the business carried on by theinsolvent person or bankrupt. Also, as noted above, the BIA will codify for the first time the availability ofinterim financing during proposal proceedings, providing funds to restructuring businesses permittingthem to continue to operate while attempting to restructure debt. The interim lender will obtain a prioritycharge in respect of the amount financed, thereby increasing the likelihood that a willing lender can befound. An order for interim financing may be made on conditions that the court considers appropriate andthe amendments provide criteria which the court is to consider in deciding whether to make an order.Significant amendments to the CCAA, which were not yet in force at the time of writing, include (but arenot limited to) a similar codification of the availability of interim financing during the development of a planof arrangement or compromise. The amendments respecting interim financing will be similar to thosewhich will be contained in the BIA, as described above. The CCAA will also allow the debtor to apply tothe court for an order declaring a person to be a “critical supplier” of goods and services to the debtor. Insuch circumstances, the court may make an order requiring the critical supplier to supply any goods orservices specified in the order, on any terms and conditions that are consistent with the supplyrelationship or that the court considers reasonable.Numerous additional amendments are contained in the amending legislation but were not yet in force atthe time of writing. It is unclear as to when these additional amendments will be proclaimed into force.Page 80