Business Insolvency

Delivers an orderly, statute mandated method of dealing with the affairs of a business that is closing its operations. It may also be used to access the priority provisions of the Bankruptcy & Insolvency Act where appropriate or beneficial for creditors or other stakeholders. Corporate Bankruptcy can be a voluntary assignment or a petition by a creditor.

Provide an orderly, statute mandated method of dealing with the affairs of a business that seeks to reorganize itself and continue its operations by way of agreement that is binding on debtor and creditor alike. This may involve restructuring of debt, partial forgiveness of debt, exchange of shares for debt, or other means of placing a business, or parts of a business on a sound financial position.

Proposals can often involve structured compromise of debts owing to Canada Revenue Agency for income taxes, Goods & Services Tax (GST), Source Deductions, and other taxes.

Provide management, shareholders or creditors with an independent, business oriented review of operations and the ongoing prospects for a business, with specific recommendations for the business and its future. These engagements are often followed up with Monitoring of the progress towards accomplishing the recommended plan.

An appointment of an Agent or Receiver/Receiver-Manager is usually mandated by a General Security Agreement (GSA). The purpose is to provide an orderly and timely possession and sale of assets, or to provide a vehicle to revitalize a business, for example to restructure a business or to make productive business operations more attractive for sale while eliminating non producing business operations. A Receiver-Manager has powers to operate a business, while Agents generally are appointed to seize and sell assets, while Receivers have limited powers to operate a business.

We act as a Monitor to assist Companies operating under the protection of this statute to reorganize their affairs and make a suitable plan of arrangement with their creditors. CCAA proceedings can be useful in dealing with issues such as builders' liens and preserving pre-sale real estate contracts and restructuring businesses.