A business may experience financial distress at any point; as part of a normal economic or business cycle, during rapid growth, or where general misfortune arises. Our firm specializes in providing assistance to small and mid-sized companies and their stakeholders.
The optimal restructuring option should benefit all stakeholders of the company to ensure that good relationships are maintained between all parties. We are committed to help you find a solution that is tailored to the unique needs of you and the company. We invite you to review the options below and contact us to help you take action to protect your interests.
Generally, the earlier a financial problem is recognized and acted upon, the more options there are available to the company. With early intervention, we can assist under-performing companies or companies experiencing short-term cash flow problems in identifying a solution to improve operating and/or financial performance. Our services may include assistance with cash flows, business plans, communication with lenders or other stakeholders, and short-term stabilization of cash flows. For further information on our business turnaround services, please download a copy of our brochure.
Where cash flow problems are more critical, it may be necessary to file a formal proposal under the Bankruptcy and Insolvency Act (or a plan under the Company Creditors Arrangement Act (CCAA) for companies where claims against the company exceed $5 million).
The filing of the applicable legal documents provides the company with protection from actions by its creditors while a restructuring plan is devised. The company continues operations during the process but may be subject to tightened credit terms and monitoring of its operations. It is imperative that the company restructuring benefits all stakeholders as the creditors are entitled to vote on the acceptance of the plan at a meeting of creditors.
Bankruptcy or liquidation is the final alternative available to a distressed company. Where the continued operation of the company is not viable, it is imperative that the company act quickly to maximize the recovery available from the assets in a liquidation. This is particularly important for any director that may incur personal obligations for the shortfall on certain statutory or personally guaranteed debts of the corporation.
If, as a creditor, you have experienced communication failure with the company, lost confidence in management, identified other risk behaviour or received notice of a formal insolvency proceeding, D. Kwasnicky & Associates can help. Our services to creditors include:
- Business review of all or a portion of the company’s business
- Monitoring a problem loan
- Acting as agent under a security agreement to realize on the secured assets
- Acting as an Interim Receiver under the Bankruptcy and Insolvency Act to protect the assets or the interest of a secured creditor or for general creditors after the filing of a petition, Notice of Intention or Proposal
- Acting as a Licensed Insolvency Trustee for any creditor(s) making a court application to petition the debtor into bankruptcy to realign priorities, realize assets or perform investigations under the Bankruptcy and Insolvency Act
- Assisting with completion of Proof of Claim forms, acting as inspector, attending creditors’ meetings or other matters