That's a good question.
I have the enviable, or unenviable, job of looking after our bankruptcy and insolvency regime both under the BIA and under the CCAA.
If anyone ever tells you they have a simple fix to insolvency, I've now been in my job long enough to know that anyone who comes with a simple fix for my legislation, it's usually.... I'm opening up a bigger box than that.
Insolvency is about balancing competing interests amongst creditors. It's a big issue. It's important for achieving business certainty for lenders, investors, and creditors, which supports a healthy and innovative economy.
The super-priorities in deemed trusts, even if small, that favour some creditors over others in insolvency can have a significant negative economic impact, both on the monitoring and compliance costs, and the shifting of losses among creditors. It can increase credit costs. They're exceptional remedies.
When we look at these issues, while small, the compliance costs and the potential impacts on the cost of creditors are significant. There's also the issue of deemed trusts and super-priorities. The list of people who are interested in super-priorities and deemed trusts is a very long one. It's a regular crew of folks who come and ask for them. The problem is that we're constantly balancing against all of those competing interests to find an equitable solution.
In the case of fresh produce sellers, we have a deemed trust for those farmers, fishers, and aquaculturists who provide goods in the 15 days leading up to it. Then they move into the unsecured creditor zone.
It's worth noting that not every bankruptcy is a full and complete haircut for unsecured creditors, as well. The unsecured creditors—