<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Simon:
Sorry? Companies in CCAA, or Chapter 11, for that matter, can cancel existing contracts.</font>
They can't just walk away they still have to pay some penalites but these are extremely reduced so for those on the receiving end it can feel like they walked away paying nothing. A friends company in CCAA did this to get out of a long term lease on a facility. They ended up paying out 3 months rent on the remaining 3.5 years of the contract.