Our Services
Our Services
- Bankruptcy
- Proposals Under the Bankruptcy and Insolvency Act
- Receiver or Receiver-Manager
- Interim Receiver
- Business Reorganizations and Business Viability Reports
- Companies' Creditors Arrangement Act
Sometimes no alternative course of action is available and a debtor must consider bankruptcy, either personal or corporate.
Voluntary Assignment Or Petition For A Receiving Order
A debtor may make a voluntary assignment or a creditor may petition a reluctant debtor into bankruptcy. Secured creditors may request the bankruptcy to protect the value of their security from statutory claims.A petition may also be used to force a reluctant debtor into bankruptcy to enable the Trustee to investigate fraudulent transfers of assets.
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►Proposals Under the Bankruptcy and Insolvency Act
You Do Not Want to Go Bankrupt, But What Else Can You Do?
Consider the proposal. A proposal provides an option for percentage settlement or an extension of time for repayment of debts. Ownership of assets and management of the business remains with the debtor.A proposal can be created with the help of a Trustee and, if accepted by the creditors and the court, becomes a legally binding agreement between the debtor and creditors.
Will It Work?
A proposal is a viable alternative to bankruptcy. Creditors realize a greater recovery and the debtor, having met his obligations as defined in the proposal, sees his liabilities extinguished.Directors' Personal Liability
In order to encourage directors of an insolvent corporation to remain in office and assist the company to reorganize, the Bankruptcy and Insolvency Act was amended in 1997 to allow a stay of proceedings in respect of claims against directors of a company filing a Division 1 proposal. The amendment shields the directors against claims that occurred prior to the proposal filings and may include personal liability for the following:
- Revenue Canada – Employee Source Deductions
- Revenue Canada – Goods and Services Tax
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Appointment By Creditor
Hayes McNeill & Partners Ltd. may be appointed Receiver or Receiver-Manager by a secured creditor to protect secured assets.Court Appointment
This appointment is useful when the sale of real estate is involved or significant amounts are owed to the Crown or utility corporations. When appointed by the court, the Receiver acts as an officer of the court for all interested parties.Receiver's Duties
Whether appointed privately or by the court, the Receiver will:
- protect and preserve the assets.
- take over management of the entity.
- act in the best interests of the entity.
- attend to P.P.S.A. and Bankruptcy and Insolvency Act filing requirements.
- sale of a business as a going concern or liquidation of assets, if not operating.
Why A Licenced Trustee?
A licenced Trustee is aware of:
- formalized procedures to render the appointment valid.
- procedures to ensure the assets are protected.
- statutory duties, claims and filing requirements.
- options or alternative procedures to maximize returns to the creditors.
- P.P.S.A. requires a Receiver to be a licenced Trustee in Bankruptcy.
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Disappearing assets? Hayes McNeill & Partners Ltd. can be appointed Interim Receiver in order to preserve assets prior to the informal appointment of a Trustee, when either a bankruptcy or a proposal is pending.
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►Business Reorganization and Viability Reports
Is The Business In Trouble, But You Are Not Sure?
Hayes McNeill & Partners Ltd. can provide consulting services to analyze the viability of the company.Appointment By Company Or Bank?
Consultation may be requested by the bank concerned about the safety of secured assets, or by the entity experiencing a temporary cash-flow problem, to avoid premature proceedings of recovery and/or ensure the bank's continued support during a temporary crisis.What Will Happen?
The consultant will investigate and report on whether the company is viable in its present form, or could be through reorganization.The report may include:
- current evaluation of operations.
- assessment of options.
- recommendations of refinancing, closing unprofitable outlets, or sale of redundant assets.
- cash-flow forecasts/budgets.
When a viability assessment has been conducted, the bank may wish to appoint Hayes McNeill & Partners Ltd. to monitor the implementation of the recommendations to ensure budgets are adhered to.
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►Companies' Creditors Arrangement Act
The Act permits a restructuring of an insolvent company or group of companies with creditor claims in excess of $5 million. Hayes McNeill & Partners Ltd. is experienced in acting as a monitor under the Companies' Creditors Arrangement Act.