Division 1 Proposal Canada

Formal Restructuring

Creditors can threaten a successful business, but a formal debt restructuring can eliminate the threat. We offer Division I Proposals under the Bankruptcy and Insolvency Act (“BIA”) and Plans of Arrangement under the Company Creditors Arrangement Act (“CCAA”) to eliminate the debt and save your business.

Division I Proposal

A Division I Proposal is an agreement between a business and its creditors to restructure its debt. If the creditors agree to the terms of the proposal and it is approved by the Court, the Division I Proposal will become legally binding. When a business is viable but financially unstable, restructuring its debt under a Division I Proposal could:

  • save the business
  • allow the business owner(s) to retain ownership in the company
  • provide a strategy for resolving CRA obligations
  • retain jobs
  • maximize creditors returns
  • improve relationships with secured creditors

provide an ongoing source of business for existing and new suppliers