The Companies Creditors Arrangement Act (CCAA) is a federal act which provides significant flexibility for companies devising a plan of compromise with their creditors in the hopes of resolving their financial problems. This legislation is reserved for larger companies, and may be utilized where claims against the company exceed $5 million. The CCAA provides the company protection from the actions of creditors allowing continued operations while a plan of arrangement is constructed.
As with reorganization and informal debt restructuring assignments, we apply a similar methodology to the CCAA process, which includes a situational analysis, and the development and implementation of a strategic plan.
A plan of arrangement must be voted on, and approved by creditors—meaning it’s imperative for the company to foster strong relationships with all creditors and involve all stakeholders in the CCAA process. Alternatively, from a creditor’s standpoint, it’s critical to understand how the voting process works and to ensure your interests are being considered. Our team has extensive experience representing the interests of a variety of stakeholders. We ensure that key relationships are managed effectively, and that complex problems are solved with creative solutions that benefit all.
To find out more about how we can help you find the solution that’s right for you and your business, give us a call today.