Companies' Creditors Arrangement Act, Business Law, Corporate Insolvency, Corporate Law
This article examines quantitative data on the outcomes of proceedings under the Companies’ Creditors Arrangement Act (CCAA), Canada’s principal statute for resolving large, complex corporate insolvencies. In particular, this article compares the durations, direct costs, and returns to different classes of creditors generated by traditional reorganizations under the CCAA and by “liquidating CCAAs”—that is, proceedings in which the insolvent debtor sells substantially all of its assets rather than reorganizing itself. The article makes a number of contributions to the existing scholarship. Firstly, quantitative data on CCAA proceedings are rare. The data examined here, collected by the author from proceedings initiated in 2012 and 2013, provide novel insights into the functioning of the CCAA. Secondly, the article questions much of the conventional wisdom surrounding liquidating CCAAs based upon the data, suggesting that further study is required. Thirdly, the article proposes reforms to address the problems raised by liquidating CCAAs.
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Alfonso Nocilla, "Reorganizations, Sales, and the Changing Face of Restructuring in Canada: Quantitative Outcomes of 2012 and 2013 CCAA Proceedings" (2019) 42:2 Dal LJ 372.