Companies’ Creditors Arrangement Act

Marginal note:Assignment of agreements

• 11.3 (1) On application by a debtor company and on notice to every party to an agreement and the monitor, the court may make an order assigning the rights and obligations of the company under the agreement to any person who is specified by the court and agrees to the assignment.

• Marginal note:Exceptions

  (2) Subsection (1) does not apply in respect of rights and obligations that are not assignable by reason of their nature or that arise under

  • (a) an agreement entered into on or after the day on which proceedings commence under this Act;

  • (b) an eligible financial contract; or

  • (c) a collective agreement.

• Marginal note:Factors to be considered

  (3) In deciding whether to make the order, the court is to consider, among other things,

  • (a) whether the monitor approved the proposed assignment;

  • (b) whether the person to whom the rights and obligations are to be assigned would be able to perform the obligations; and

  • (c) whether it would be appropriate to assign the rights and obligations to that person.

• Marginal note:Restriction

  (4) The court may not make the order unless it is satisfied that all monetary defaults in relation to the agreement — other than those arising by reason only of the company’s insolvency, the commencement of proceedings under this Act or the company’s failure to perform a non-monetary obligation — will be remedied on or before the day fixed by the court.

• Marginal note:Copy of order

  (5) The applicant is to send a copy of the order to every party to the agreement.