Is Your Business Facing Financial Challenges?
Is your business facing financial difficulties in Vancouver, Surrey, or surrounding areas? The sooner you take action to address these difficulties, the better! Available resources tend to diminish over time, leaving you with fewer options to adjust course. Contact Crowe to discuss your unique circumstances. We’ll assist you in building and executing a customized corporate restructuring plan to help you rise above these financial obstacles.
With over 60 years of experience, our team of Licensed Insolvency Trustees will support you in developing a practical and achievable restructuring plan to restore the health of your business. Often, the situation seems worse than it is, and you don’t need to deal with this alone. Contact us to discuss your financial issues with one of our trusted advisors and take a step to regain some control. You’ll be glad you did!
Formal Restructuring Services
There are formal, legislated restructuring options available to assist business owners in overcoming their financial difficulties. These legislated strategies provide a framework for business owners to maintain possession and control of their day-to-day business operations under the guidance of a Licensed Insolvency Trustee. Typically, creditors are prevented or “stayed” from taking aggressive collection action to recover their debts. Business owners are given some time and space to breathe and collect their thoughts with a view to creating a viable restructuring plan.
Formal Restructuring Under the BIA
The Bankruptcy & Insolvency Act (“BIA”) provides what is known as a “debtor-in-possession” restructuring option, which is applicable to organizations of all sizes. Restructuring under the BIA creates a binding contract between your company and its creditors that is tailored to your company’s specific financial situation.
Formal Restructuring Under the CCAA
Similar in nature to a Division 1 Proposal under the BIA, the Companies’ Creditors Arrangement Act (the “CCAA”) is also a “debtor-in-possession” restructuring statute available to larger companies with a minimum of $5 million in debt.
Informal Restructuring Services
Normally a first option for consideration, an informal restructuring proposal is a viable option for less complex situations with relatively minor debts or where creditors are relatively few in number. In cases where the level and complexity of debt are not significant, an informal proposal or workout may be an affordable alternative to a Division 1 Proposal. The difficulty with an informal proposal is that it generally requires 100% agreement from creditors, which can be problematic to obtain.
Role of a Licensed Insolvency Trustee
A Licensed Insolvency Trustee provides knowledge, transparency and stability in a financial storm. Acting in an impartial capacity, the Licensed Insolvency Trustee provides clarity, comfort and accountability to various stakeholders during the restructuring process.
Did You Know?
Only a LIT is authorized to file your proposal under the BIA or CCAA and provide you with guidance in this situation.
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