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
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Contact us today
Contact us to learn more about money management techniques and debt repayment strategies to manage your finances and eliminate your debt.
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