By Annie Claude Beauchemin, Jean-Yves Fortin, Ad. E., and Elyssa Leiberman, from our Business Law Practice Group
August 6, 2020 — On July 20, 2020, the Court of Appeal finally ruled on a controversy that had existed for several years in Quebec regarding the respect of the delays set out in the Civil Code of Québec [CCQ] for the surrender of property, in the context of a recourse undertaken by a secured creditor under the Bankruptcy and Insolvency Act [BIA] (Séquestre de Media5 Corporation, 2020 QCCA 943). It is now clear that a secured creditor who wishes to appoint a national receiver under section 243 BIA in order to enforce its security, will first have to ensure that the prior notice period set out in article 2758 CCQ has duly expired. However, it will remain possible to plead that urgent circumstances require the appointment of an interim receiver under sections 46, 47 or 47.1 of the BIA.