Public post-secondary institutions can now be excluded from CCAA creditor-protection proceedings

Plain-language summary · AI-assisted · not legal advice

The definition of 'company' in the Companies' Creditors Arrangement Act has been updated to exclude 'prescribed public post-secondary educational institutions.' This means that universities, colleges, and other public post-secondary bodies that are designated by regulation can no longer use the CCAA to seek court-supervised protection from their creditors. The change applies only to proceedings commenced on or after the date the amendment came into force — existing proceedings are unaffected. Post-secondary institutions and their creditors, lenders, and insolvency advisors should check whether a given institution falls within the prescribed category before assuming CCAA restructuring is available.

Who this affects: public post-secondary educational institutions · institutional lenders and bondholders · insolvency and restructuring practitioners · creditors of post-secondary institutions