October 9, 2015
On October 9, 2015, the CCAA Judge released a short decision granting the relief sought by USSC in its Cash Preservation Motion and Transition Services Agreement Motion, which we described below. The CCAA Judge indicated in court on October 8, 2015 that he planned to issue a short decision quickly due to USSC’s urgent financial situation and that he would release more detailed reasons for his decision thereafter. To view the short decision, please click here. (note that our firm had attended in court at the hearings and are listed as counsel, but were not listed on the court’s fax sheet due to error).
As discussed below, part of the relief that USSC requested in its motions was the suspension of retiree health benefits (but not life insurance benefits).
Also on October 9, 2015, following the release of the CCAA Judge’s decision, the Government of Ontario announced financial assistance for USSC retirees due to the suspension of their health benefits by USSC. To view the Government’s announcement, please click here. We will report further on the Government’s assistance program shortly.
We are also in discussions with our client committee and SSPO about the availability of alternate health benefit coverage for retirees during the suspension period. One option that may be available is provided through the Canadian Association of Retired Persons (“CARP”). To view their medical benefit options for retirees, please click this link.
We will report further on retiree medical benefit options for USSC retirees following our discussions with our client committee and SSPO.