Applying the common -
law «interest stops rule» normally applied in Bankruptcy and Insolvency Act proceedings, Justice Newbould ruled that post-filing interest was not payable on the Crossover
Bonds.5 Justice Newbould began his reasons with reference to the «fundamental tenet of insolvency
law that all debts shall be pari passu and all unsecured creditors [shall] receive equal treatment».6 Justice Newbould found that the status quo with respect to unsecured creditors should be maintained as at the date of Nortel's filing and that to permit certain claims to grow disproportionately to others during the CCAA stay period would
violate the status quo.