Where the context allows it, we advocate financial recovery through corporate restructuring. This option benefits all parties involved and provides the following advantages:

• Business continuity
• Job preservation
• Maintenance of client relationships
• Preservation and even strengthening of the secured creditors' standing
• Protection of the value of stockholder shares

Our financial advisors offer a wealth of services aimed at restructuring businesses including:

• Evaluation of the organizational structure
• Project analysis
• Corporate appraisal
• Improvement of management practices
• Implementation of recommendations
• Planning and budgeting
• Creation of a board of directors
• Interim management
• Management of human resources

There are two main types of restructuring: informal and formal. Informal restructuring is possible when a company has few creditors, the causes of the insolvency are known, and a solution to the problem can be quickly implemented. Under these circumstances, recourse to the Bankruptcy and Insolvency Act may not be required.

Formal restructuring is conducted under the Bankruptcy and Insolvency Act. This type of restructuring allows a company to consolidate its debt on a given date, suspend all legal action against it, prohibit creditors from realizing their securities, and give it the time it needs to seek out new capital or financing. When a solution to the cause of the insolvency has been identified, a proposal is drafted for the creditors (offer to settle). Creditors then vote for or against the proposal at a meeting. Once the creditors have accepted the proposal, it is ratified by the court and becomes binding on all creditors.

For large businesses that owe at least $5 million, restructuring may be conducted under the Companies' Creditors Arrangement Act.

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.

When this is the most viable option, we can recommend proposals that are worthwhile and acceptable to all parties involved. The purpose of a proposal is to keep your business running, preserve jobs, allow corporate restructuring, maintain your clientele, etc.

A proposal has many benefits:

• Your company is protected from any seizures.
• The debtor maintains seisin of its property and continues operations.
• Assets are frozen.
• All recourse by creditors is suspended.
• No proceedings may be initiated, with some exceptions.
• Administrators are discharged from their statutory responsibilities for unpaid government debts (GST and PST).
• Commercial leases can be cancelled under certain circumstances.