Canadian High Court Lets Bankrupt Co. Escape Cleanup Order

Law360, New York (December 7, 2012, 4:15 PM EST) -- The Canadian Supreme Court on Friday said that the government could not force newsprint company AbitibiBowater Inc. to complete environmental cleanup activity at five former industrial sites, finding that the remediation orders amount to a monetary claim that can be eliminated as part of bankruptcy proceedings.

The province of Newfoundland and Labrador had argued that a claims procedure order under the country's bankruptcy law does not prevent the government from enforcing environmental protection orders, but in a 7-2 decision the high court found that the province...
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