The Companies’ Creditors Arrangement Act (CCAA) is a federal law designed to help financially challenged corporations with over five million dollars in debt reorganize and regain stability.
This process starts by seeking court protection under the CCAA, giving your business the opportunity to restructure its operations and financial obligations while working toward a stronger future.
With the right guidance—backed by our Licensed Insolvency Trustees (LITs)—the CCAA can provide a clear path to recovery, renewed confidence, and a stronger future for your business.
The purpose of the CCAA legislation is to enable a distressed company to restructure its debt so it can avoid bankruptcy and stay in business.
After submitting an application, the business receives 30 days of court-granted protection against any action by its creditors.
Our Licensed Insolvency Trustees (LIT) can provide information about the Companies’ Creditors Arrangement Act and help you determine if it is the right solution.
The CCAA is restricted to larger corporations, as a corporation must have amounts owing to creditors in excess of $5 million to be eligible to use the Act.
For the Plan to be binding on each class of creditors, the majority of creditors must approve. Once they approve, Court approval is also required.
When filing an initial application with the Court, the debtor company must file a projected cash-flow statement.
We can help you weigh your debt-relief options so that you can make a confident and well-informed decision.
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