Home Ontario Court of Appeal confirms bondholders not entitled to post-petition interest
 

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Ontario Court of Appeal confirms bondholders not entitled to post-petition interest

2015-12-22 00:21:44| Telecom - Topix.net

The Ontario Court of Appeal recently affirmed the decision of the Ontario Superior Court of Justice in Nortel Networks Corporation , [1] that the "interest stops" rule applies in proceedings under the Companies' Creditors Arrangement Act [2] . Specifically, the Court held that the "interest stops" rule applies in liquidating CCAA proceedings, such as Nortel, as parties retain the right to provide for the payment of post-filing interest in a CCAA restructuring plan.

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