Ontario Court Says Bankrupt Nortel Networks Liable for Cleanup of Contaminated Site

摘要

The Ontario Court of Appeal has clarified in separate rulings on the liability of bankrupt entities that government orders to remediate contaminated property take precedence if they are regulatory actions but are subject to the insolvency process if it is certain the government will perform the remediation and seek restitution. In one case, the appellate court ruled Oct. 3 that an Ontario Ministry of the Environment remediation order issued to Nortel Networks Corp. and its subsidiaries represented a regulatory order that was not affected by the corporate group's bankruptcy proceeding, rather than a provable claim that was subject to the jurisdiction of the bankruptcy court ((Re) Nortel Networks Corp., Ontario Court of Appeal, No. C55682, 10/3/13).