Environmental issues and creditor's rights in Alberta and Saskatchewan

A clarification of the ranking of environmentally related claims in bankruptcy and receivership proceedings, was presented. Also, the liability that a creditor assumes when taking control of a debtor's business or assets, particularly where environmental contaminants are concerned, was explained. The way that environmental law operates and the sorts of liability it imposes and upon whom, was also explained. Generally, environmental legislation imposes liability upon the owner of a contaminated property, whether or not the owner caused or created the problem. However, legislation also exists which imposes liability on the party in control and on the party which caused the contamination. A review of cases which deal with environmental legislation and their impact upon receivers in Saskatchewan and Alberta, was presented. Ways in which secured creditors can assess liability and minimize risks, were also described. The proposed amendments to the Bankruptcy and Insolvency Act (BIA) expand the current limited protection from personal liability for trustees in bankruptcy and extend it to receivers, trustees, monitors and agents