When large corporations encounter financial trouble, they often turn to the Companies’ Creditors Arrangement Act (CCAA)—a federal act that allows organizations to restructure their financial affairs and avoid bankruptcy. As part of the process, a company will apply to the court for protection under the CCAA and, in return, receive 30 days of protection from creditors as it prepares a Plan of Arrangement.
During this time, the court will appoint an independent third party, referred to as a monitor, to assist with the filing of the Plan of Arrangement and report on the company’s ongoing operations.
Farber’s extensive financial advisory experience, combined with our familiarity with the CCAA, allows us to provide corporations with the support they need during times of financial distress. As a monitor, we’ll keep tabs on ongoing business operations and report all major events to the court. We’ll also help the company in question prepare the Plan of Arrangement and arrange a meeting to allow creditors and shareholders to vote on it. We’ll then tally and record the votes and, if it’s approved, we’ll file it with the court for a final approval.
In addition to acting as a traditional, court-appointed monitor, we also act as a liaison for a wide variety of corporate legal proceedings. For instance, in a pension dispute, we have extensive experience acting as financial advisors to both pensioners and regulators—allowing us to guide all stakeholders through a range of complex proceedings.