This is an internal memo released by the City of Ottawa:
Mayor Watson and Members of Council,
Earlier today, Plasco Energy Group Inc. (Plasco) issued a news release indicating that the company has obtained an order from the Ontario Superior Court of Justice approving Plasco’s application under the Companies’ Creditors Arrangement Act(CCAA).
The CCAA is a federal law that allows insolvent corporations with debts in excess of $5 million to restructure their business and financial affairs. CCAA proceedings generally involve an order halting any action by creditors against the insolvent corporation. It should be noted the CCAA is a separate regime from bankruptcy.
Legal Services has not yet been served with a copy of the order from the Superior Court, but has sought a preliminary opinion from external counsel on the potential impact of this announcement on the City of Ottawa. Based on this preliminary opinion, there appears to be no barrier to the Environment Committee and City Council proceeding with discussions and consideration of the City’s options under the Waste Conversion Agreement with Plasco.
Legal Services will provide updates and advice at the Environment Committee and Council as new information becomes available.
Finally, I anticipate that the staff report on Plasco will be issued later today with the Environment Committee Agenda.
Rick O’Connor, CMO
Certified Specialist (Municipal Law: Local Government) | Spécialiste agréé (Loi sur les municipalités: gouvernement local)
City Clerk and Solicitor | Greffier de la Ville et chef du contentieux
City of Ottawa | ville d’Ottawa
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