GREY:XEBEQ - Post by User
Comment by
sorrensonon Sep 29, 2022 8:01pm
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Post# 34996372
RE:RE:CCAA
RE:RE:CCAAThe first thing that happens is that the shares are voided
shareholders get nothing as they're unsecured they're owners of the company and unsecured
just look at GM or Air Canada and ask how the shareholders did
Gann999 wrote: While true it's basically 1 step away from bankruptcy or receivership hopefully they come to an agreement that is favorable to all parties including shareholders.
LyChauncey wrote: Q: Is a company that has filed for protection from its creditors under the Companies' Creditor Arrangement Act ("CCAA") in receivership or bankruptcy?
A: In a word, no. A company (also referred to as the "Debtor") that has filed under the CCAA for protection from its creditors is not in receivership or bankruptcy. Rather, it has filed under the CCAA in order to devise a plan of restructuring and compromise for its creditors that avoids the company going into receivership or bankruptcy, with a view to keeping the Debtor company operating, increasing the amount that may ultimately be paid to creditors and preserving the Debtor's employees' jobs.