On October 29, 2004, the Supreme Court of Canada released its long awaited decision in Peoples Department Stores Inc. v. Wise. This case will be of interest to insolvency professionals, lenders and other creditors as it considered the duty of care owed by officers and directors of a company to its creditors when the company is insolvent or in the "vicinity of insolvency". The Court declined to follow the decisions of the Courts in the United States, Australia and New Zealand extending a director’s fiduciary duty and duty of care to a company’s creditors.

type Financial Services Alert - November 2004