Corporate Recovery & Insolvency

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Our licensed debt professionals work closely with clients to understand the financial and operational aspects of their business, and are here to provide unbiased advice on the best path forward.

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Financial problems are, unfortunately, a reality for a growing number of businesses in Ontario. Our corporate recovery and insolvency specialists work to help you with today’s ever-changing and complex debtor/creditor and asset protection laws and regulations. With over 35 years providing knowledgeable and conscientious service in this area, we understand the needs of businesses in financial trouble and those trying to stay out of it – particularly the needs of privately-owned businesses. There is a confusing array of laws and regulations in place to protect debtors, creditors and corporate assets, and fortunately, there are also several solutions available to you. We can help you find the best solution for your particular situation. Besides our specialized help with financial reorganization, receivership, proposals and more, we can also call on Crowe Soberman’s accounting, business valuation and tax professionals when their assistance would be beneficial to you.

Division I (Commercial) Proposals

Division I Proposals, also known as Commercial Proposals, are available to businesses in Canada that are experiencing financial difficulties. They are a compromise between the debtor and their creditors. When the Proposal is approved by the creditors and the Court, it is legally binding. There is no limit with respect to how much money is owed.

A corporation can make a Division I Proposal to its creditors to reduce the amount of its debts, extend the amount of time to pay off the debt, or provide a combination of both. If a company is viable but experiencing difficulties due to any number of reasons, it is possible to restore its financial well being through a Proposal. Through the filing of a Proposal, a company has an ability to save their business, preserve jobs, give creditors the best return, and enable the owners to maintain their interest in the business.

The advantages of a Division I Proposal are that all actions against the corporation by its unsecured creditors are stopped, the corporation retains all its assets, and its financial problems can be resolved without filing bankruptcy.

If your business financial situation is spiraling out of control, you are not alone. Crowe Soberman Inc. has helped others in your situation, and we can help you too.

Bankruptcy

For some companies facing financial distress, a turn around through a Commercial Proposal is simply not a viable option, and the final remaining option is bankruptcy. This should always be the last option considered as it is essentially a liquidation of the company’s assets.

Receiverships

A Receiver is a third party appointed either by the Court, or privately by a secured lender through a letter of appointment. The Receiver’s mandate is, generally, to take control and protect property for the purposes of liquidating the property, in order to distribute the proceeds to creditors.

Appointing a Receiver is sometimes the most effective mechanism to solve a shareholder dispute, as a remedy for recovering amounts owed to a secured lender, or for the purpose of carrying out investigations into the affairs of companies that have been accused of fraudulent activities, such as Ponzi schemes. Crowe Soberman Inc. has worked both as a Court Appointed Receiver and privately appointed Receiver in all of these capacities for numerous industries in Ontario.

Other Services

Our corporate recovery turnaround and insolvency team also offers expertise in many other areas that do not involve a formal filing. These include:

Exit strategies
Monitor under CCAA
Cash Flow review and management
“Look-see” appointments
Liquidations under the OBCA and CBCA

What can clients expect?

"Clients can expect me to deliver some clarity in the difficulties they face. The world of debt restructuring and turnaround are often new to business owners and individuals. What we do is give clients clear and concise answers so they can take that away and help them make the right decision."