Restructuring: The filing of a Division 1 Proposal or a Restructuring under the Companies Creditors Arrangement Act
There are many unforeseen situations occur that can cause a financial crisis to erupt. The loss of a major contract, a shareholder dispute and/or even a shift in the economy can cause an otherwise stable corporation to spin into financial turmoil. We provide well thought out options, advice in business turnaround and work-outs and cost effective solutions.
The solution to a corporate financial crisis can often be found through an organized restructuring. A restructuring under the Companies Creditors Arrangement Act or a Division 1 Proposal under the Bankruptcy and Insolvency Act enables a corporation to obtain a stay of proceedings (“Stay”) to facilitate an immediate financial and legal stabilization. The “Stay” can prevent a landlord from terminating a lease and prohibit the Canada Revenue Agency from garnishing receivables and bank accounts. It can also be used to put a stop to the threat of legal proceedings, suspend existing legal proceedings and more.
As licensed trustees, we have the legislative authority to administer restructurings under both the Bankruptcy and Insolvency Act and Companies Creditors Arrangement Act.
Benefits of a formal restructuring include the termination of contracts, such as commercial or equipment lease agreement, or other agreements that you may have.
We will help you negotiate with trade suppliers and other creditors. We will also help you develop a restructuring and turnaround plan to enable you to recover from your current financial crisis, stabilize your operations and rebuild your organization. If restructuring is not the solution, we can help you come up with other strategies to find the right solution to your financial problem. At Albert Gelman Inc. we are committed to your success!