RE:RE:RE:RE:Distribution Approved, Less $500K...My understanding is that the CRA is a typical circling actor in those circumstances. The taxman, if pro-active (not with TBE), can even move up in the priority scheme during the claims process. My impression is that they were behind the ball on this one.
The rules, in BIA, are relatively clear versus the interest stops rule. Secured can expect to obtain post-filing interest. I doubt CRA can obtain a secured status in this Receivership. For those interested in forming an opinion on the severance issue.
https://cswan.com/employer-obligations-on-the-transfer-of-a-business/
https://www.ottawaemploymentlaw.com/2014/08/continuity-of-employment-following-sale.html
https://canliiconnects.org/en/commentaries/28582
https://www.nelligan.ca/publications/e/38879CCAA%20The%20Ultimate%20Restructure%20-%20J%20Payne%20-%202009.pdf
https://docplayer.net/22227904-Mergers-and-acquisitions-in-canada.html
In a way, TBE was in a very special situation. The oil price to enterprise value graph showed a lot of torque (both directions because of leverage). It may end up with the unenviable title of the "strongest" of the failed group. The cleanest dirty shirt, sort of. Fulcrum style.
But, as far as severance packages go, fairness and reasonableness should apply. No?
At a minimum, employees have a duty to mitigate their loss (and the loss to others?). No?
Enough said for now.