Throughout the province of British Columbia, businesses of all types provide goods and services as well as employment. While many businesses succeed, there are a variety of reasons why financial difficulties could arise. When that happens, the first inclination of the business may be to assign itself into bankruptcy.
Often this approach is a "lose-lose" for all involved. In addition to creditors remaining receiving far less than what they are owed, other parties may be impacted as well. For example, landlords and other businesses that rely on the bankrupt could also suffer financial consequences.
While there are situations in which bankruptcy is the best option, in many circumstances there are other courses of action that may be taken.
At Gehlen Dabbs, we understand the breadth of devastation of a failing business and how, for the benefit of all involved, it may be possible to address the financial issues without resorting to bankruptcy. Depending on the circumstances, one of the following corporate restructuring options may be available:
- Informal compromises or workouts with creditors;
- Proposals under the Bankruptcy and Insolvency Act; and
- Court proceedings under the Companies' Creditors Arrangement Act.
Before opting for bankruptcy to address financial difficulties, a business should explore these other options that may exist. Please see our website for more information on the alternatives that could be available.