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.
Our corporate recovery turnaround and insolvency team also offers expertise in many other areas that do not involve a formal filing. These include:
What can clients expect?
Today's laws and regulations are complex and ever-changing.
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