Is there a form of Creditor Arrangement for Companies in Canada?
- Canada
- 02/15/2001
- Gascon & Associates LLP
Yes, under the Companies Creditors Arrangement Act, the Superior Court may appoint a manager, under whose direction and subject to the supervision of the Superior Court the insolvent company attempts to continue its commercial activity and compose with its creditors. If this process fails, the company is adjudged bankrupt. This type of arrangement has become more common as, under certain circumstances, it is more flexible than a proposal under the provisions of the Bankruptcy and Insolvency Act.
