The Canadian Imperial Bank of Commerce (CIBC), St-Jacques Street West, Montréal, Québec

Conservatory Measures

What is a conservatory measure?

The Superintendent of Bankruptcy puts in place conservatory measures when a bankruptcy or insolvency estate needs protection. It might be in cases of Licensed Insolvency Trustee (LIT) malfeasance or if serious wrongdoing on the part of a LIT puts estate files at risk. Conservatory measures may also be put in place if a LIT becomes ill or dies without a valid succession agreement. Finally, conservatory measures may be put in place if a LIT, for whatever reason, has allowed the administration of his or her practice to become substandard.

Canada

In the matter of: Bruno Marchand
Georges E. Marchand
Marchand Syndics Inc.


Directions for Conservatory Measures
(section 14.03 of the Bankruptcy and Insolvency Act)


Whereas the Bankruptcy and Insolvency Act (the Act) provides the Superintendent of Bankruptcy with the general power to supervise the administration of all estates and matters to which the Act applies;

Whereas the exercise of the powers of the Superintendent of Bankruptcy set out in paragraph 5(3)e) of the Act revealed that the trustees have an abnormally high number of files that have been open more than three years;

Whereas the trustees are also the subject of an investigation under the provisions of section 14.01 of the Act;

Whereas on August 5, 2003 a letter was sent to the trustees giving them 15 business days in which to submit an acceptable closing plan intended, among other things, to reduce to 10% of their inventory the percentage of summary administration files open for more than 36 months and to 40% of their inventory the number of ordinary administration files open for more than 36 months, or to provide the Superintendent of Bankruptcy with a satisfactory explanation as to why the number of files older than three years exceeds these levels;

Whereas despite repeated requests, the trustees did not submit, within the prescribed time, a detailed closing plan in compliance with the requirements of the Superintendent of Bankruptcy;

Whereas the trustees effectively refused to submit a detailed closing plan, submitting only a plan that does not accord any priority to the oldest files, nor to those with large bank balances, which plan does not even set time lines for the various stages of closing, the trustees in question instead chose to challenge the authority of the Office of the Superintendent to require such a closing plan;

Whereas moreover the trustees did not even respect their own closing plan, which had not, for the reasons set out above, been accepted by the Office of the Superintendent;


Whereas the trustees lacked diligence in closing their files, of which the number of ordinary administration estate files open for more than three years, as of February 3, 2004, was 69 administered by the corporate trustee and Bruno Marchand, and 133 by the corporate trustee and Georges E. Marchand, 35 of which were under the personal licence of Georges E. Marchand;

Whereas some of these estates contain large sums of money which the trustees are not distributing to the creditors;

Whereas the trustees' conduct is prejudicial to the creditors, who are being subjected to undue delays in the payment of their dividends;

Whereas the trustees refuse or neglect to complete the administration of these files, and in so doing, are not rendering their accounts as required by the Act;

Whereas it is not permissible for a fiduciary, such as a bankruptcy trustee, to refuse or neglect to account for his administration;

Whereas the Superintendent of Bankruptcy has reasonable grounds to believe that the estate files require protection and that the administration of these files should be completed as soon as possible;

Whereas the Superintendent of Bankruptcy may, in order to protect estates, exercise the powers set out in subsection 14.03(1) of the Act, under the circumstances anticipated in subsection 14.03(2) of the Act;

Whereas the Superintendent of Bankruptcy has delegated to the undersigned, in accordance with subsection 14.01(2) of the Act, in certain situations mentioned in subsection 14.03(2), the Superintendent's powers as specified at subsection 14.03 (1) of the Act, copies of which delegation are attached, along with copies of subsections 14.01(2) and 14.03(1) to (4) of the Act;

Whereas subsections 14.03(1)b) and c) and (2)b) and c) of the Bankruptcy and Insolvency Act apply;

I, the undersigned, Sylvie Laperrière, in my capacity as Senior Analyst, Professional Conduct, direct: 

The Canadian Imperial Bank of Commerce (CIBC), located at 265, St-Jacques Street West, Montréal, Quebec H2Y 1M6:

  1. to consider, as of receipt of these directions, H.H. Davis & Associates Inc., trustees, agents of the Office of the Superintendent of Bankruptcy, as being the only authorized signatories with regard to all transactions on monies credited to the estate accounts listed in Appendix A under the administration of Marchand Syndics inc., Georges E. Marchand and Bruno Marchand;
  2. to make no debit and/or payment and/or transfer on funds credited to the estate accounts listed in Appendix A without the signature of Ms. Lynda Lalande, Mr. Herbert Davis or Ms. Paula Brooks of H.H. Davis & Associates Inc.;
  3. not to pay out of the accounts listed in Appendix A any bills of exchange, cheques, bank drafts, certificates of deposit, or other such instruments that may have been issued prior to receipt of these directions but are presented for payment after receipt of these directions, unless said cheques, bills of exchange or bank drafts are co-signed by Ms. Lynda Lalande, Mr. Herbert Davis or Ms. Paula Brooks of H.H. Davis & Associates Inc.

These directions replace and annul those that were delivered to you on February 13, 2004.

These directions take effect immediately and will stay in place until further notice or until a decision is rendered under section 14.01 of the Act.

In accordance with subsection 14.03(3) of the Act, these directions bind their addressees, who must comply with them;

In accordance with subsection 14.03(4) of the Act, a person who complies with these directions is not liable for any act done by the person only to comply with them.

Signed, in the City of Sainte-Foy, Quebec
February 24, 2004

Sylvie Laperrière
Senior Analyst, Professional Conduct

Appendix A
File Number Estate Name Court Number
41-996592 Construction Morano Ltd. 500-11-000147-732
41-046019 Brosseau, Louis-Philippe 500-11-003915-838
41-054600 Ouellet, Denis 500-11-000706-859
41-05460 Ouellet, Sylvie 500-11-000706-859
41-057941 Plomberie Et Chauffage Lachine 500-11-003049-851
41-060005 Telepro Inc. 500-11-000581-864
41-063751 Société Chapichou Inc. 500-11-002944-862
41-076258 Theodorakakos, Panagiotis 500-11-003205-883
41-079209 Bistro De La Muse Inc. 500-11-000193-892
41-080935 Salon 9 Design Inc. 500-11-001113-899
41-081645 R.O. Albert Inc. 500-11-001486-899
41-082131 Duguet, Charles 500-11-001760-897
41-085533 Lunair Architecture Inc. 500-11-003497-894
41-086638 Installations Electrovit Ltee 505-11-000908-892
41-089250 Residence De La Rive (2744-9123 Qc Inc.) 750-11-000066-909
41-089497 Ferdinand, Pierre Jacques 500-11-001345-905
41-089646 Boulangerie Rome (114621 Canada Inc.) 505-11-000342-902
41-091421 B. D'amours Construction Ltee 500-11-002303-903
41-091894 Les Remorques Bedard Inc. 500-11-002520-902
41-097724 Dorda, Henry 760-11-000027-918
41-098768 Gauthier, Alain 505-11-000176-912
41-099131 Materiaux De Plomberie Et Chauffage Du Coteau LtÉE 700-11-000201-915
41-101893 Boutique Ombrage Inc. 500-11-002279-913
41-103039 Gagnon Sport Inc. 500-11-002825-913
41-103543 1847-0641 Quebec Inc. (D.E.S. Marine Enr.) 500-11-003070-915
41-105511 St-Jacques, Claude 500-11-003990-914
41-106078 Pilon, Robert 500-11-004269-912
41-106610 Succession Renald Savoie 500-11-004496-911
41-111030 Vide Et Traitement Canada Inc. 505-11-000029-921
41-117011 Valiquette, Noel 500-11-002962-922
41-117358 Airobec Inc. 500-11-003111-925
41-117364 Entreprises De Metal Jan-Mir Ltee 500-11-003112-923
41-117963 Recyclage Electrostatique Ltee 500-11-003408-925
41-118554 Mercure, Pierre 705-11-000454-927
41-122254 Les Habitations Premiere Inc. 705-11-000709-924
41-123125 Pinsonnault, Monique 500-11-005589-920
41-149536 Bo – Store (2646-8629 Quebec Inc.) 700-11-000764-946
41-167835 Perron, Gilles Et Al 505-11-000726-963
41-175126 Choquet, Robert 765-11-000147-962
41-184648 Dubuc, Manon 540-11-000388-969
41-187669 Multivan D.B. Inc. 500-11-005847-971
41-190454 Theoret, Andre 500-11-006249-979
41-225951 Restaurant Le Diabolo (9049-7538 Qc Inc.) 705-11-001863-993
42-015033 Metallurgie Farnham Inc. 455-11-000030-820
42-017845 Daigneault, Jean 450-11-000014-880
42-018135 Begin, Mario 450-11-000156-889
42-030551 Desjarlais, Richard 455-11-000012-974
42-032007 Agri-Lab Inc. 460-11-000156-987
This document has been reproduced as submitted by the delegate of the Superintendent of Bankruptcy.
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