The Role of the Monitor in CCAA Restructurings

Keynote Speaker:

The Honorable François Rolland

Chief Justice of the Superior Court of Quebec

September 16, 2005

Quebec City

“Judicial creativity notwithstanding, from the description of the functions of the monitor found in the CCAA, one understands his loyalty to be essentially threefold.

First, as a Court-appointed officer, the monitor has a responsibility towards the Court.

Second, when monitoring business and financial affairs and facilitating the restructuring of a debtor, the monitor has a responsibility towards the debtor company.

Third, as the person in charge of advising them on the situation, the monitor has a responsibility towards the creditors.

This threefold mission of the monitor warrants two comments from the judges' perspective.

First comment. As Court-appointed officer, the monitor is, as some have rightly depicted before, the "eyes and ears" of the judge in dealing with the debtor company's business and financial affairs. For any judge, this is important and, I must confess, essential in allowing us to properly carry out our role as decision makers.

As judges, we take great comfort in knowing that the monitor is our "eyes and ears", and we normally give strong consideration to the monitor's assessment of a given situation.  Obviously, this is true as long as he brings us his financial expertise as opposed to his legal expertise… Sometimes, we have to remind some monitors, or their counsels, of the distinction…

Thus, any report of the monitor submitted to the Court is normally a key element in any decision making in CCAA proceedings.”