TORONTO — A court-appointed representative for Sears Canada retirees says Canada's bankruptcy laws should be changed to prevent financial hardship for members of other underfunded pension plans.
Provided by The Canadian Press
Kenneth Eady says it is unfair that banks receive more protection than pensioners under Canadaian bankruptcy and insolvency legislation.
Eady says Parliament should pass a Bloc Québécois bill to amend the Bankruptcy and Insolvency Act and the Companies' Creditors Arrangement Act.
He's one of several witnesses who have appeared before members of the four major parties studying a private member's bill from Bloc MP Marilène Gill.
Gill wants underfunded pension plans to receive similar priority as banks when bankruptcy courts determine how to divide a company's assets.
In the Sears Canada case, there wasn't enough money to fund pension shortfalls after debts to banks and were repaid ahead of other classes of creditors
This report by The Canadian Press was first published June 8, 2021.
The Canadian Press
Kenneth Eady says it is unfair that banks receive more protection than pensioners under Canadaian bankruptcy and insolvency legislation.
Eady says Parliament should pass a Bloc Québécois bill to amend the Bankruptcy and Insolvency Act and the Companies' Creditors Arrangement Act.
He's one of several witnesses who have appeared before members of the four major parties studying a private member's bill from Bloc MP Marilène Gill.
Gill wants underfunded pension plans to receive similar priority as banks when bankruptcy courts determine how to divide a company's assets.
In the Sears Canada case, there wasn't enough money to fund pension shortfalls after debts to banks and were repaid ahead of other classes of creditors
This report by The Canadian Press was first published June 8, 2021.
The Canadian Press
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