CCAA Debtor In Possession Financing Without "Adequate Protection"

There are a number of similarities between restructuring legislation in Canada and the United States. Each of Canada and the United States have adopted a form of the UNCITRAL Model Law Cross-Border Insolvency in order to facilitate cooperation and efficient administration of cases with an international component. In Canada this has occurred through implementation of both Part XIII of the Bankruptcy and Insolvency Act (Canada) and Part IV of the Companies' Creditors Arrangement Act (Canada) while in the United States Chapter 15 of the Bankruptcy Code (United States) is used in cases involving foreign recognition. The CCAA and Chapter 11 of the Code both offer certain advantages for debtors undergoing complex reorganization proceedings with multiple stakeholder groups in that each permits the debtor to remain in possession of its assets, affords the debtor a stay of proceedings, segregates affected creditors into classes and provides for the compromise and extinguishment