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is now "business as usual" following GM Canada's successful restructuring. "Our entire contingency plan and the strategy we had put in place was in expectation or anticipation of GM filing for bankruptcy protection." The association similarly pre- pared for a Chrysler CCAA filing which did not materialize. "Up until June 1 . . . we were all bracing for a GM bankruptcy fil- ing and so everything that we were going to do with the retention of legal teams, the contingency plans that we had in place for dealing with that, being the representative of GM dealers . . . was all geared around GM being in bankruptcy protection." CADA's internal examination of GM Canada's offer to dealers was handled by Gauthier, Tim Ryan, the association's director of industry relations and general counsel, and a few other staffers. Nova Scotia bondholders The final sticking point for a successful out-of-court restructuring of GM Canada was the need to come to terms with bond- holders associated with General Motors Nova Scotia Financial Co. and General Motors Nova Scotia Investments Ltd., companies established to make loans and issue debt in Canada. A group of investment firms led by Aurelius Capital Partners LP of New York sued the Nova Scotia subsidiar- ies in March, arguing that a transfer of $600-million from Canada to GM's U.S. parent took cash out of the companies at a time when GM was "either insolvent or on the brink of insolvency." With some of the bondholders owed a total of $1.3-billion refusing to accept a deal that would pay them about 33 cents on the dollar, The Globe and Mail reported. Politicians would blame the failure of the restructuring on the bondholders in a press conference followed up by a General Motors Canada CCAA filing with a Superior Court of Ontario judge. A lawyer involved in the Nova Scotia bondholder settlement confirmed the "High Noon" style showdown between government and the bondholders which cleared the way for GM Canada's out-of-court settlement. Jeff Galway, Pamela Huff, J.A. Prestage, and Nathan Cheifetz, all Toronto partners at Blake Cassels & Graydon LLP, together with John Keith of Cox & Palmer repre- sented a group of note holders of General Motors Nova Scotia Finance Co. The new GM Canada Politics and business were intertwined in GM Canada's June 1 announcement that it had successfully avoided court pro- tection and had approval to restructure from its various stakeholders. It had the high profile backing of Canada's Prime Minister Stephen Harper and Ontario's Premier Dalton McGuinty, who together pledged $10.6-billion in aid in return for a 12-per-cent stake in the automaker and a seat at the directors table. GM Canada's MacDonald says, how- ever, there is a lot of credit to be spread around. "It's a testament to our dealers, it's a testament to our employees, it's a testament to the CAW, it's a testament to the great work done on the part of the law firms and the foresight to the govern- ments of Canada and Ontario. "It is almost quintessentially Canadian to get it done in this fashion." Your clients' money matters Canadian Commercial Reorganization: Preventing Bankruptcy Designed to help you manage or avoid bankruptcy by keeping you up to date on the legislative and judicial changes. This resource helps you understand both the (BIA) and the (CCAA). Looseleaf & binders (2) • $229 Releases invoiced separately (3/yr) • P/C 0413030000 Vol. 1/2 ISBN 0-88804-147-0/-294-9 Debt Collection: A Step-by-Step Legal Guide From the first interview with the client to the actual collection of debt, this practical and authoritative work guides you step by step through each stage of the process to help you ensure a successful result. Looseleaf & binder • $159 Releases invoiced separately (1/yr) P/C 0444030000 • ISBN 0-88804-084-9 Debt Restructuring: Principles and Practice Inside you'll find critical discussion of the history, theory and purpose of the debt restructuring process. Also included are discussions on drafting and an interpretation of the (BIA) and the (CCAA). Looseleaf & binders (2) • $257 Releases invoiced separately (2/yr) • P/C 0460030000 Vol. 1/2 ISBN 0-88804-098-9/-200-0 COMING SOON! Honsberger on Bankruptcy in Canada, Fourth Edition This fourth edition offers comprehensive description of bankruptcy in general and the distinctive features of the Canadian system in particular. Anyone with an interest in bankruptcy, including the bench, bar, chair and students will benefit from this concise treatment of the law. Hardbound • Approx. 920 pp. • December 2009 Approx. $225 • P/C 0181010000 • ISBN 978-0-88804-491-4 For a 30-day, no-risk evaluation call: 1.800.263.2037 CA061 Canada Law Book is a Division of The Cartwright Group Ltd • Prices subject to change without notice, to applicable taxes and shipping & handling. CA061 (CL 1-2h).indd 1 CL0809 www. C ANADIAN Law ye rmag.com A UGUST 2009 35 7/8/09 3:07:48 PM Vern W . DaRe and John D. H onsberger, Q.C. Bankruptcy and Insolvency Act Creditors Arrangement Act Richard H . McLaren Companies' Creditors Bankruptcy and Insolvency Act Arrangement Act Companies' Vern W . DaRe, and John D. H onsberger Q.C. Marcia J. Fraser