The Companies' Creditors Arrangement Act
("CCAA"), allows companies with at least $5 million of
debt to restructure their financial affairs so that they may become
productive again. In many cases, the liquidation of an insolvent
company will often yield little by way of recovery to the creditors
and will often harm other stakeholders. One of the purposes of the
CCAA is to create a regime for the court-supervised reorganization
of an insolvent company. It enables an insolvent company to carry
on its business in a manner designed to cause the least possible
harm to, among others, the company, its employees and its
creditors.
While in most CCAA cases the debtor company brings the
application for protection from its creditors pursuant to the CCAA,
the CCAA is broad enough to provide that a creditor may bring the
application in respect of a debtor company. In addition to bringing
the initial application, creditors are also permitted to propose a
plan of arrangement to the
