Distribution of Post-Filing Interest on Proven Claims

August 3, 2021

The Office of the Superintendent of Bankruptcy (OSB) has published a Position Paper that  provides clarity on when the post-filing interest on proven claims should be paid in bankruptcies and proposals.

The OSB’s position is that the Bankruptcy and Insolvency Act requires the consistent treatment of post-filing interest on proven claims in bankruptcies and proposals. Therefore, if sufficient funds are available, post-filing interest is payable on proven claims in bankruptcies as well as in proposals to the extent that the terms of the proposal support the payment of that interest.

For details, please read the Position Paper on the OSB’s Website.