RE: My thoughts... A bit of info on CCAA vs CBCA
The Canada Business Corporations Act (CBCA). Pursuant to the CBCA, a solvent Canadian corporation can restructure certain financial debt obligations pursuant to a creditor vote that binds hold-out creditors subject to shareholder approval and to court approval for general fairness. The CBCA is not an "insolvency" statute and, in fact, is not available to insolvent companies. For insolvent companies, the typical approach would be to use the Companies' Creditors Arrangement Act (CCAA), but CCAA proceedings take longer, are more court intensive, are more expensive and implicate more contractual rights. For example, a CCAA filing triggers "bankruptcy defaults" under a company's contracts with major vendors. However, by proceeding under the CBCA, The disadvantages, as alluded to above, were that shareholder approval was needed and that the process was open to dissenting creditors to assert that the company is insolvent and, therefore, not eligible for a CBCA transaction.