INFORMAL AND FORMAL ARRANGEMENTS
You or your Licensed Insolvency Trustee (LIT) can seek to work out a payment plan with your creditors or a refinancing that gives your company more time to pay its debts.
Division I Proposal
You can authorize your Licensed Insolvency Trustee (formerly trustee in bankruptcy) to make a proposal to your company’s creditors to pay a substantial portion of your unsecured debt over an extended time period.
Companies’ Creditors Arrangement Act
Available to business’s with $5 million in debt, you can receive short-term protection from your creditors to restructure your business and financial affairs. An initial application is made to the court to obtain protection.
A receiver is appointed by the secured creditor and represents the secured creditor’s interests. A Receiver can be authorized to operate your business if it is necessary or advisable. For example, a receiver can be appointed to complete work in progress, carry out an important contract, or maximize the value of by business by the selling it. A receivership is usually initiated by court appointment but can be initiated privately. The receiver derives his or her rights through a court order or contractual agreement.
Bankruptcy proceedings are an option of last resort that can be initiated by a debtor or creditor. Bankruptcy also occurs automatically if a Division I Proposal under the Bankruptcy Insolvency Act fails.
TURN TO HARRIS & PARTNERS INC. FOR INSOLVENCY SERVICES
Corporate and business financial challenges can be quite involved and diverse and so the options available for resolution can be equally diverse. Speaking with a licensed insolvency trustee can help you make the appropriate decision that is best for your organization.
At Harris & Partners Inc., our Licensed Insolvency Trustees have extensive experience with corporate insolvency. Over our three decades in business we have seen a wide range of companies – everything from small independent companies to franchises to companies with hundreds of employees, with up to $15 million dollars in debt. We handle all corporate cases and there is no business bankruptcy case we would turn away. Insolvency recovery is one of our key areas of specialty.