Sure. Thank you.
The concern is that even if we assume the bill as it may be amended is confined only to payments that are missed, pension plan deficits have to be funded over time. As we all know, restructuring can take a long time, so from the time a company goes under CCAA protection, it could be years before it emerges from that protection. If the court has approved suspension of special payments and those payments are missed, then drip, drip, they will go into this super-priority protection.
You really have a smaller example of the problem if the whole deficit goes into super-priority protection. If there's a $1-billion deficit that's being paid over five years, hundreds of millions of dollars could fall into this super-priority protection as the company is under CCAA protection. It could make it more difficult to emerge from that protection, and may cause the parties to decide they might as well just have a bankruptcy declared on day one, because they don't want to expose themselves to this. Then you can't emerge from protection until those amounts are paid anyway.
You might think of it as going into protection with just the amounts owing today falling into the super-priority protection, but it could actually be a very substantial amount and a big proportion of the deficit if the restructuring takes place over a number of years, as has happened recently in Canada.