• Quebec Court Overturns Federal Pension Deemed Trust in Aveos CCAA
  • December 26, 2013 | Author: Sam Babe
  • Law Firm: Aird & Berlis LLP - Toronto Office
  • In a November 20, 2013 decision in the Companies Creditors’ Arrangement Act (the “CCAA”) proceedings of Aveos Fleet Performance Inc. and Aero Technical US, Inc. (collectively, “Aveos”), the Quebec Superior Court (the “Court”) held that the deemed trust created by the federal Pension Benefits Standard Act, 1985 (the “PBSA”) does not give pension claimants a super-priority in CCAA proceedings. The PBSA governs, among others, pension plans of federally regulated employers including, without limitation, those engaged in maritime shipping, broadcasting, banking and, as in the case of Aveos, aviation.