As has been noted by many, the Companies’ Creditors Arrangement Act (“CCAA”) has become the restructuring statute of choice in Canada. However, in many cases, the CCAA is used only to sell off assets instead of “restructuring” a business. In the vernacular, this utilization of the CCAA is called a “Liquidating CCAA.” Despite the initial popularity of liquidating CCAAs, the process has faced criticism as of late. Moreover, the recent amendments to the CCAA and the Bankruptcy and Insolvency Act (“BIA”) could also affect the viability of Liquidating CCAAs. So what will be the role of Liquidating CCAAs in the future?

Read more by clicking the download button.