The BC Supreme Court recently dealt with a case involving TLC The Land Conservancy of British Columbia Inc. and whether certain assets may be used to satisfy creditors. TLC is having financial problems and trying to restructure under the Companies’ Creditors Arrangement Act (the “CCAA”). This case involves whether the property is subject to a special purpose trust. BC has specific legislation dealing with these type of scenarios. The decision has been released and it will be interesting to see if it is appealed.
Here is a link to the Reasons for Judgment http://www.courts.gov.bc.ca/jdb-txt/SC/14/00/2014BCSC0097.htm
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Mark Blumberg is a partner at the law firm of Blumberg Segal LLP in Toronto and works almost exclusively in the areas of non-profit and charity law.