Corporate Bankruptcy

Although it is a last resort, bankruptcy is sometimes the most viable option. For example, when a company's situation does not lend itself well to restructuring or when a company waits too long before consulting an insolvency expert, then bankruptcy may be the only solution.

As a bankruptcy company, our role consists mainly of liquidating company assets and distributing the proceeds to the various creditors in compliance with the Bankruptcy and Insolvency Act.

Bankruptcy will remove an enormous burden from the company's administrators and managers, and our trustees will be on hand to provide the right advice on dealing with the bankruptcy process.

Why Use a Bankruptcy Trustee

Here are the main benefits of doing business with a bankruptcy trustee rather than an official receiver:

• Faster execution of chattel mortgages concerning inventories and equipment. No advance notice (10 days under the BIA, 20 days under the CCQ) unless inventories are performed under Section 427 of the Bank Act
• Elimination of the obligations of secured creditors under sections 243, 244, 245, and 246 of the Bankruptcy and Insolvency Act
• Reversal of certain priorities of the Civil Code of Québec (PST, GST, lessor, and corporate taxes, except federal and provincial DAS) that will be considered ordinary creditors rather than privileged secured creditors
• Suspension of other creditors’ procedures against burdened assets
• Simplified sales procedures compared to the Civil Code procedure (security buybacks vs. mortgage remedies)
• Use of the trustee's broad powers of investigation
• No occupation rent by the trustee before the first meeting with creditors
• Limits the risk of Section 14 of the BIA
• The trustee can take possession of assets free of ties and can change the locks of the premises occupied by the debtor (moving the assets is not necessary)
• 5% of the superintendent’s levy
• Bankruptcy inspectors must approve sales for all creditors
• Taxation of the trustee's fees and expenditures related to the sales of burdened assets
• The trustee has a greater duty of transparency than the official receiver towards the various concerned parties

To provide you with the appropriate solutions for your company’s insolvency problem, it is crucial that our financial advisors have a clear picture of the situation.

By performing an objective evaluation of your case as soon as possible, we can deliver the most appropriate and cost-effective recommendations to solve your company’s financial difficulties. As a manager, you can then make informed decisions to solve your company’s insolvency problems.