Page 12 - Corporate Restructuring & Bankruptcy

S12 | MONDAY, JUNE 13, 2016 | Corporate Restructuring & Bankruptcy
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INSOLVENCY BETWEEN NEIGHBORS
RESTRUCTURING A COMPANY WITH A CANADIAN CONNECTION: FIVE THINGS YOU NEED TO KNOW BEFORE GETTING STARTED
Dealing with the restructuring and insolvency of an enterprise with a Canadian connection can pose unique challenges. While Canada and the United States share many of the same common law traditions and fundamental legal principles, the nuances of Canadian insolvency and restructuring law can make a significant difference when crossing the U.S.-Canadian border. In this case, the devil is truly in the details— and understanding those details is critical to ensuring a successful outcome.
What follows are the top five things you need
to know when dealing with a restructuring or insolvency file that has a Canadian connection (and contrary to popular misconceptions, they do not include hockey, beavers or maple syrup!):
1. WHAT ARE YOUR OPTIONS, EH?
The Companies’ Creditors Arrangement Act (CCAA) is Canada’s most common restructuring statute for large corporations and cross-border filings. Generally, if an insolvent corporation owes over $5 million (CAD) and has assets, or does business or is incorporated in Canada (federally or provincially), it will qualify for a full CCAA filing.
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