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Air canada overview
Air canada overview
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This received a 27/28 in my OAC law class so, have a blast..... WHEN FILING FOR BANKRUPTCY IN CANADA The law sometimes seems to pervade all aspects of our lives and an involvement with bankruptcy and insolvency law has proved to be almost unavoidable for business people in Canada during the 1990's. In simplest term, corporate and individual bankruptcy law provides a set of rules to prevent chaos among the creditors of an insolvent corporation or individual. The legislation is a complex in part because those creditors fall into so many categories-secured creditors, unsecured creditors, government creditors, and so on-each with its own special rights and interests in the bankruptcy process. Canada's federal bankruptcy statute, the Bankruptcy and Insolvency Act, also deals with corporate receivership. A receivership is not the same as a bankruptcy. By the same token, a receiver is not the same as a trustee in a bankruptcy. However, the two systems have a lot in common and a receivership of an individual or a corporation usually occurs at the same time as a bankruptcy. Corporations that have become insolvent can try to avoid bankruptcy and receivership by reorganizing their finances. The Bankruptcy and Insolvency Act deals with reorganizations and another federal statute, the Companies' Creditors Arrangement Act, may offer relief to some corporations. Some of Canada's biggest news stories of the past few years have concerned the attempts of major Canadian companies such as Olympia & York, Algoma Steel, Grafton Fraser, Woodwards, Westar Mining, and Birks, to complete reorganizations. But the most well known companies were both Air Canada and Canadian Airlines. Air Canada, Canadian Airlines, and United Airlines are all commercial passenger air carriers. Beyond that, they have only a few similarities. All are old commercial carriers that were facing bankruptcy together until the Canadian Postal Service approved air travel for Canadian Mail in 1925. There, they reached a point of divergence that continues today. AIR CANADA Time Magazine's November 17, 1958 cover sported a diagonal banner across one corner reading "Jets Across Canada." (Goutierez, 1997). At the time of the article's publication, "Air Canada had earned a reputation as an industry leader, and this, coupled with the high-profile leadership of 'Mr. C.R.,' made Air Canada's imminent transcontinental jet service the catalyst for an exciting new era. Time wrote that although Pan Am had already flown jets across the Atlantic, C.R. Smith and Air Canada would usher in the 'Jet Age' for most Canadians with the introduction of
Timeline of this case should be clearly organized in order to better understanding this case. In 2009, Poor Son transferred Rich Grandson to Parent. In 2010, Poor Son filed a voluntary petition for reorganization under Chapter 11 of the US bankruptcy code, and Parent deconsolidated Poor Son from statements. In 2011, Poor Son filed an action against Parent seeking to void the transfer of Rich Grandson. In May 2012, the bankruptcy court held a selection meeting in which it considered competing plans of reorganization submitted by four bidders. In June 2012, OtherCo, an unrelated party, became the wining plan sponsor. In July 2012, OtherCo rescind its offer because the bad evonomic condition. In December 2014, the bankruptcy court recommended
"In early 2000 Air Canada along with entire airline industry faced huge loss due to the high global economic downturn. With slow travel outstanding to the downturn and September 2011 incident the airline industry was hit extremely hard. Air Canada consequently posted net losses of $1.32 billion in 2001 and $828 million in 2002. Furthermore, with the spread for SARS disease Air Canada’s Asian route got effected
Corporations functioning within the jurisdiction of the Australian Commonwealth are governed and regulated by the provisions of the Corporations Act, 2001. Common law principles developed through judicial
Global competition- As more companies are coming into this airline market so there can be a threat to Air Canada from these
“[T]he pari passu principle providing for equality of division among creditors is said to be one of the (if not the most) fundamental principles of the law of insolvency and is at the very heart of the who...
The global financial crisis affected the many advanced economies, particularly the United States. Unemployment significantly increased, people were evicted from their homes, and the search for employment was a dead end. However, Canada was not affected by the same force as the United States: “Canada’s financial sector was less affected than most advanced economies and it had the highest bank soundness rating in the World Economic Forum surveys from 2007-2008 through 2012-2013.” Despite the relatively stable status of the Canadian economy, Canada was very much involved in the review and improvement of international financial regulations. Canada was in a position to make changes to financial regulations due to their perceived experience in the matter, as Canada escaped the crisis relatively unscathed.
Gaughan, P. A., 2002. Mergers, Acquisitions, and Corporate restructuring. 3rd ed.New York: John Wiley & Sons, Inc.
For economic factor, Qantas Airways Limited was stable because the economic in Australia was in good
With Detroit filing for bankruptcy public policy came into play the bankruptcy court had to take action.
However, Canadian’s bankruptcy laws are unique and comprehensive. The Major legislation in Canada covering bankruptcies and insolvencies related matter is known are “Bankruptcy and Insolvency Act” (BIA). It does not only cover bankruptcy liquidation, it also takes care of debtor reorganization. There is another law known as the Companies’ Creditors Arrangement Act (the CCAA). This law helps to restructure larger companies after suffering from a bankrupt.
Chapter 7 and Chapter 13 bankruptcies are full of advantages and disadvantages. But at the same time they are very different. Without knowing these differences a person could lose many things from money to possessions.
The best-known transport companies are Nedlloyd, Frans Maas and Smit International. The world’s oldest national airline, KLM Royal Dutch Airlines, had to merge with French airline Air France in 2003.
A person who is unable or unwilling to pay his or her debts may declare bankruptcy. The state of being solvent means that one has the ability to pay his or her debts. However, insolvency means that a person cannot pay his or her debts. In order to declare bankruptcy, a person must file a petition for bankruptcy in a bankruptcy court. A voluntary bankruptcy proceeding is started by the person who is declaring bankruptcy, whereas an involuntary bankruptcy proceeding is started by the creditors of the bankrupt person. A creditor who is not a party to the bankruptcy proceedings, but who has an interest in the proceedings, may file an ex parte application with the bankruptcy court.
The Principle of Separate Corporate Personality The principle of separate corporate personality has been firmly established in the common law since the decision in the case of Salomon v Salomon & Co Ltd[1], whereby a corporation has a separate legal personality, rights and obligations totally distinct from those of its shareholders. Legislation and courts nevertheless sometimes "pierce the corporate veil" so as to hold the shareholders personally liable for the liabilities of the corporation. Courts may also "lift the corporate veil", in the conflict of laws in order to determine who actually controls the corporation, and thus to ascertain the corporation's true contacts, and closest and most real connection. Throughout the course of this assignment I will begin by explaining the concept of legal personality and describe the veil of incorporation. I will give examples of when the veil of incorporation can be lifted by the courts and statuary provisions such as s.24 CA 1985 and incorporate the varying views of judges as to when the veil can be lifted.
Bankruptcy carries a stigma although when bankruptcy is truly necessary, it provides financial relief for those in need. I know many individuals who have declared bankruptcy. Some due to their own financial mistakes and others due to unforeseen circumstances.