October 26, 2012
Process matters. The buts and bolts of Companies' Creditors Arrangement Act (CCAA) filings across provincial borders are a case in point.
It matters where you file for CCAA protection, according to Scott Bomhof, because even companies that carry on business in several provinces are likely to have a larger stake in one particular community, where they have their head offices, where the majority of their decision makers are located, where the bulk of their employees live and work. And the decisions that flow from CCAA processes may matter more in that community than anywhere else.
"There's a social benefit that can come out of a restructuring in terms of preserving jobs, and preserving consumer and supplier arrangements within the jurisdiction where people are already situated," says Scott.
Thanks to recent improvements in the process of CCAA filings, it is now possible for people in communities across Canada to reap these benefits, Scott adds.