Company Restructuring
We resolve. You restart.
Company restructuring and financial challenges
Company restructuring is an effective solution to commercial financial difficulties. By establishing a turnaround plan, an insolvency professional can solve a number of organisational weaknesses at their source and contribute to improved performance.
A company without major financial problems can also benefit from turnaround services to improve its overall situation. Simply contact a Ginsberg Gingras professional to learn which financial turnaround measures apply to your company.
What are the advantages of company restructuring?
Ensure business continuity.
Preserve business partnerships with the company’s clients.
Maintain jobs.
Two types of company restructuring
Informal restructuring
Informal restructuring serves to solve short- or medium-term financial problems. This solution enables the company to apply turnaround measures without having to resort to the Bankruptcy and Insolvency Act.
A company can consider this solution if it has few creditors, if the cause of insolvency is already known, and if turnaround measures can be rapidly applied.
If the situation allows, we recommend this type of company restructuring because it is effective and quick. Additionally, it does not require recourse to legal processes.
Formal restructuring
Formal company restructuring is regulated by the Bankruptcy and Insolvency Act. Business leaders can deploy turnaround measures while benefitting from legal protection. Once implemented, this solution allows the company to:
- Crystallize its debts at a given time.
- Suspend all legal procedures against the company.
- Prevent a creditor from enforcing their guarantee.
- Obtain the necessary time to search for new capital or financing.
How formal company restructuring works.
Once a turnaround plan has been established to correct the cause of insolvency, a proposal is filed to the creditors. They vote on whether to accept or reject the proposal at a meeting.
If the proposal is accepted, the settlement offer is ratified by the court and links the company’s creditors to the proposal.
Restructuring for large companies
Large-scale companies with debts of over five million dollars are protected by the Companies’ Creditors Arrangement Act (CCAA). If you are in this situation, our insolvency professionals can develop a financial turnaround plan adapted to your company.
Contact one of our advisors if you are considering a company restructuring.
At any time, they are available to answer your questions and help you make the right decision.
Fill out our quick financial analysis form or the appointment form that follows for a consultation.
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