Encore FX Ltd. converts from BIA to CCAA protection
Overview
Fillmore Riley is acting for the principal secured creditor in the Companies' Creditors Arrangement Act (CCAA) proceedings of EncoreFX Ltd.
EncoreFX was a significant participant in the currency exchange risk management and cross-border payments sector. It underwent a voluntary assignment in bankruptcy under the Bankruptcy and Insolvency Act in March 2020 in response to fluctuations in global currency markets related to the worldwide spread of the COVID-19 pandemic. As part of a negotiated framework to resolve all claims, the insolvency trustees successfully sought the commencement of proceedings pursuant to the CCAA, despite a BIA insolvency being in progress. The British Columbia Supreme Court decided that EncoreFX qualified for CCAA protection, relying on a provision of the BIA not previously considered by Canadian courts.
Working closely with specialist counsel at the Victoria firm of Jones Emery Hargreaves Swan LLP, the Fillmore Riley team is led by Tim Dewart, with support from Kalev Anniko and Aron Grusko.