Position Paper - Effect of the Annulment of a Notice of Intention to Make a Proposal

The Office of the Superintendent of Bankruptcy (OSB) has published a position paper to provide guidance on the effect of the annulment of a Notice of Intention (NOI) to make a proposal and to clarify the ongoing duties of Licensed Insolvency Trustees (LITs) in this regard, including a requirement to submit a Statement of Receipts and Disbursements (SRD).

The  OSB is of the view that the annulment of an NOI by the Court, even expressed as an ab initio order, does not invalidate things done, work performed, or actions taken in the course of the proceedings initiated under the Bankruptcy and Insolvency Act, and additional steps may be required after the order is made to complete the LIT ’s mandate. The LIT is still subject to the supervision of the OSB and the Court until the mandate is completed such that an SRD will be required among other steps, such as informing the creditors.

For details, please read the position paper on the OSB  website.