Lender Services

When loans default without the opportunity for recovery, businesses close, or external forces require a lender to protect it’s security interest, Agency appointments may be a good avenue to follow for a smaller loan account as a means to realize on their security. Such an appointment avoids the need for the realization firm to enter into costly procedures such as tax returns, GST returns and the like that would otherwise be borne by the lender. It also offers a vehicle to realize quickly on security and get on with business.

The Bankruptcy and Insolvency Act provides a Federally mandated scheme of distribution and structure to wind up the affairs of an insolvent person, real or corporate. It is frequently to the advantage of a lender in a realization situation to consider this option in order to order priorities in its favour. 

Companies Creditors Arrangement Act (CCAA) mandates are frequently applied to provide court protection from creditor action by debtors or lenders and permit time to develop and implement a plan to reorganize a large company’s affairs for forward viability. Our firm will act as a Monitor or consultant in such mandates. 

The Bankruptcy and Insolvency Act provides for a secured creditor to apply to Court to appoint an Interim Receiver. This is often utilized in an unstable or confrontational situation for a limited period of appointment to enable the lender to evaluate a situation, then decide whether to proceed to appoint a Receiver/Receiver-Manager or to precipitate a bankruptcy once more facts are available.

Enables the lender to monitor the ongoing performance of a business account experiencing difficulty, in situations where commitments are made by the customer to bring an account into line with the lender’s specific requirements.

A Division I (Bankruptcy and Insolvency Act or BIA) Proposal may be an effective means to achieve a successful realization where coordination with unsecured and preferred creditors is required and necessary. As a provision included in the BIA, the Order of priority mandated by the BIA prevails.

This vehicle offers a platform, where appropriate, to operate a business for a limited or ongoing period of time by enforcing under the lender’s registered security interest. It also brings obligations to complete statutory returns and other costs that will be borne by the customer or ultimately in the amount realized and applied to repay outstanding lender's indebtedness. 

We frequently act in real estate loan matters as Receiver of Specific Property as well as Receiver of Rents, acting to secure viable offers for Court approved sale of assets. This strategy is a cost effective way of avoiding administrative costs experienced by a Receiver or Receiver-Manager over a business. 

When the lender knows or has concerns that an account is not operating effectively, or there is concern over an account’s future prospects, we will act as a consultant to evaluate a business or a portion of a business, provide our findings and proposed courses of action tailored to the Lender’s requirements.