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What is a notice of intention?

The notice of intention is an emergency measure provided by the Bankruptcy and Insolvency Act (BIA). It is a temporary measure used to obtain a stay to allow time to prepare a proposal.

Only a Licensed Insolvency Trustee (LIT) can file a notice of intention with the Office of the Superintendent of Bankruptcy Canada (OSB) on behalf of a company.

Ginsberg Gingras professionals fully understand the rules governing the notice of intention. They know how to use this measure effectively to enable companies to get back on their feet. If you are experiencing difficulties, please call upon our expertise to receive tailored advice and personalized assistance.

How long does a notice of intention last?

 

Normally, the duration of a notice of intention is thirty (30) days, starting from when it is filed by the trustee.

In some cases, the court may grant additional time periods of forty-five (45) days each, up to a combined maximum of five months. To be granted additional time, the company must show that it is acting in good faith and that these extended periods will not cause harm to the creditors.

The company, through its LIT, must file a proposal before the notice of intention expires.

Advantages of a notice of intention.

Rapid administration.

Protects against creditors’ financial recovery measures.

Offers additional time to prepare a proposal.

Enables the company’s activities to continue.

Stay of proceedings

Avoids bankruptcy.

How is a notice of intention filed?

  1. Meeting with a trustee and analysis of the company’s situation.
  2. Filing of the notice of intention with the OSB.
  3. Dispatching of a copy of the notice of intention to creditors within five days of its filing.
  1. Suspension of financial recovery measures of creditors.
  2. Preparation of the proposal.
  3. Filing of the proposal within the deadline.

The consequences following the expiry of a notice of intention.

If a company does not file a proposal within the time limit granted in the notice of intention, it will be considered bankrupt. A trustee will then be appointed to administer the bankruptcy. However, this type of situation is very rare.

Generally, this occurs only when none of the scenarios of the suggested proposal are viable for the company or when the company’s administrators decide to halt its activities.

Ginsberg Gingras, customized advice.

 

Regardless of the nature or magnitude of your company’s troubles, the trustees at Ginsberg Gingras will take the time to thoroughly analyze your situation. If filing a notice of intention is the best solution, we can carry out the procedures in your name. Thanks to the stay granted by a notice of intention, your company will be sheltered from recovery measures while you work with your LIT to develop a proposal.

You can rely on our professionals to support you during throughout this process and ensure that your rights are respected. Since 1980, Ginsberg Gringas has enabled many companies to remedy their financial situation and recover their profitability.

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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