Business Proposal
- A business proposal allows a company to place itself under the protection of the Bankruptcy and Insolvency Act (BIA) to obtain protection against its creditors.
- A licensed insolvency Trustee is appointed to notify the creditors and negociate with them.
- The proposal may include a monthly payment or any other method of payment based on a projection of the company’s future income and expenses.
- The arrangement plan is divided into categories of creditors who will have to vote for or against it.
- A meeting of the creditors must be held within 21 days.
- For the proposal to be accepted a majority of the creditors in each category holding two third of the debt must vote in favor.
- Once the plan is approved, it will be submitted to the court for approval.
- The refusal of proposal by the creditors or the court results in automatic bankruptcy.
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For further information or questions, or to schedule a free and confidential consultation with a trustee, please contact us at 819 595-1800 or email us at info@lebelsydic.com.