The Winding-Up and Restructuring Act: Realigning Insolvency Law’s Orphan to the Modern Insolvency Law Process
Banking & Finance Law Review
The Winding-Up and Restructuring Act (WURA) is an important pan of Canada's insolvency law structure. Insolvent banks and insurance companies may only be liquidated under WURA and are excluded from the Bankruptcy and Insolvency Act (BIA) and the Companies' Creditors Arrangement Act (CCAA). However, WURA has been neglected and many of its provisions reflect its nineteenth century origins. The most recent round of insolvency reforms in S.C. 2005, c. 47 and S.C. 2007, c. 36 do not make any substantive changes to WURA. BIA and CCAA have been modernized over time; WURA is the orphan of insolvency law reform.
The article examines whether WURA should remain a distinct statute and if so, whether it should be limited to financial institutions. The article considers specific areas of reform in relation to pre-bankruptcy transactions, the role of inspectors, preferred claims and Crown priority.