Case Study: In Re Hartford Computer Hardware

Law360, New York (May 16, 2012, 4:32 PM EDT) -- Section 11.2 of the Companies’ Creditors Arrangement Act (CCAA) gives the Canadian court explicit authority to grant a priority charge for amounts advanced by a lender to a CCAA debtor after the CCAA filing (a “DIP Loan”); however, the section provides that the charge may not be granted to secure an obligation that exists before the order is made.

Section 11.2 effectively prevents a roll-up of prepetition debt into a DIP Loan. A “roll-up” is an arrangement where all or a portion of prepetition loans provided...
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UK Financial Services

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Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.