Plans of Arrangement Under the CCAA
The Companies Creditors Arrangement Act (“CCAA”) is a relatively simple piece of legislation that provides significant flexibility in devising a plan of compromise between debtor and creditors in the hopes of resolving the financial problems of a distressed company. CCAA legislation may be utilized where claims against the debtor company exceed $5 million. In short, CCAA legislation provides the insolvent company protection from the actions of creditors and allows the insolvent company to continue operations while a plan of arrangement is constructed.
As with Reorganization and Debt Restructuring assignments, we apply a similar methodology to the CCAA process including situational analysis, and development and implementation of a strategic plan.
It is of paramount importance to note that the creditors vote to approve any Plan of Arrangement. As such, it is imperative from a debtor's perspective to foster strong relationships with all classes of creditors by involving all stakeholders in the CCAA process. Alternatively, from a creditor's standpoint, it is critical to understand how the voting process works and to ensure your interests are being considered.
Alger & Associates Inc. has significant experience representing the interests of both debtors and creditors. Our professionals ensure that key relationships are managed effectively such that complex problems are solved with creative solutions that benefit all stakeholders.
To find out more about the services of Alger & Associates Inc. please click on one of the links located in the navigation bar to the left of this page. To speak to an Alger & Associates professional about how we can help your organization, please contact Our Team.
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