Just fyi, For those who do not know the difference- They did not file for bankruptcy, they filed for a restructuring proposal in which they have time to get creditors aligned.
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What is a Notice of Intention to Make a Proposal and /or Proposal?
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A Notice of Intention to Make a Proposal (commonly referred to as "NOI") is a procedure under the Bankruptcy and Insolvency Act (“BIA”) that allows financially troubled corporations the opportunity to restructure their affairs. It is often the first stage of a restructuring process under the BIA, which allows a company to restructure its financial affairs, through a formal Proposal. The NOI/Proposal provides an opportunity for a company (also known as a “Debtor”) to avoid Bankruptcy and allows the creditors to receive some form of compensation for amounts owing to them by the company.
The process begins with a company filing a NOI with the Official Receiver (a representative of the Office of the Superintendent of Bankruptcy) and the Courts. Once accepted, the company is granted an initial 30 days of protection (often referred to as the "Stay") from its creditors to enable the company to prepare its Proposal. The Stay against the creditors can be extended upon further application (by the company) to the Court.
Typically, the Court will continue the protection beyond the initial 30-day period if the company can demonstrate that it is likely that it will file a Proposal and an extension of the Stay is not materially prejudicial to the creditors, as a whole. The Stay can be extended for a period not exceeding six months from the date of filing the NOI. During the Stay period, the company will often continue operating, although it may commence restructuring activities at any time.