November 27, 2014
The Ontario Court of Appeal granted the Ad Hoc Group of Bondholders leave to appeal application for one of the three issues raised. The Court will consider whether the “interest stops rule” was correctly applied. That is, whether Newbould J. erred in deciding that the Guaranteed Bondholders are not entitled to claim or receive post-filing interest and other amounts owing under the relevant debtentures above and beyond the outstanding principal debt and pre-petition interest. A copy of the decision of the Ontario Court of Appeal granting leave to appeal can be viewed here. For further information please see our Allocation Litigation tab by clicking here.