Corporate Proposal – Division 1
Adversity is part of the economic and business cycle. The key to successfully dealing with adversity is not to ignore the warning signs that your business needs help. Our corporate reorganization services include: financially restructuring through a proposal to your corporate creditors, giving your business the debt relief it requires but at the same time allowing it to return to profitability. We will assist you in assessing changes that may need to be put into place regarding your management team and in planning how to handle all aspects of the impact of a proposal.
A Division 1 Proposal can also be used by individuals whose debts are greater than $250,000 (not including mortgage on a principle residence).
We can help you by:
- Drafting the terms of the proposal
- Advising you on the tax implications of forgiveness of debt
- Negotiating with your lender and suppliers
- Preparing cash flows for the going forward operations
Companies' Creditors Arrangement Act (CCAA)
The Companies' Creditors Arrangement Act (CCAA) is a federal law allowing insolvent corporations that owe their creditors in excess of $5 million to restructure their business and financial affairs. The main purpose of the CCAA is to enable financially distressed companies to avoid bankruptcy or foreclosure or seizure of assets while maximizing returns for their creditors and preserving both jobs and the company's value as a functioning business. CCAA proceedings are carried out under the supervision of the Court.