Livent Multimillion Dollar Cross-Border Insolvency

A joint court hearing between the New York and Ontario Bankruptcy Courts was held on April 18 and 19, 2000 in the multimillion dollar cross-border insolvency proceedings for troubled theatrical production company Livent Inc. The matter involves multiple Chapter 11 filings in the Southern District of New York (Manhattan) and CCAA filing in Toronto.

The Joint Hearing was to settle the procedure to carve up the proceeds resulting from last year’s sale of the bulk of the assets to SFX Entertainment. The two courts were linked by video and counsel in either court were able to make submissions to both judges simultaneously. The joint hearings process was pioneered last year in the Livent case when it was used to settle a cross-border Protocol and then an interim sale that required hearings in both courts.

Christopher W. Besant of Cassels Brock & Blackwell LLP represented the City of Toronto. The Livent Unsecured Creditors Committee was represented in Canada by Derry Millar of Weir & Foulds. Cleary Gotlieb represented this party at the hearing in the U.S. Court. The Livent Receiver is represented in Canada by D.J. Miller of Thornton Grout Finnigan. Livent is not in receivership in the U.S. and was represented in the U.S. by its counsel, Willkie Farr & Gallagher. CIBC is represented in Canada by Ian McElcheran of Blake, Cassels & Graydon LLP, and in the U.S. by its counsel, Sidley & Austin. The Wilmington Trust Co., trustee for the Holders of Livent Unsecured Debentures, is represented in Canada by David Rosenbaum of Fasken Martineau DuMoulin LLP.