In a bankruptcy, the bankruptcy trustee is in charge of collecting on any claims held by the bankrupt, and is also given additional powers under the Bankruptcy and Insolvency Act (BIA) to attack transactions entered into prior to bankruptcy. But what happens when the trustee fails or refuses to pursue a claim?
Geoffrey Dabbs was interviewed by CTV News and the Vancouver Sun and Province for expert commentary on the recent bankruptcy of the Pemberton Music Festival.
See the CTV story at http://bc.ctvnews.ca/ontario-festival-offering-free-passes-for-pemberton-ticket-holders-1.3421452 and the Sun story at vancouversun.com/business/local-business/pemberton-producers-embroiled-in-lawsuits.
Subject to the provisions of the Bankruptcy and Insolvency Act (BIA), one or more unsecured creditors of a debtor may apply to the court for a bankruptcy order in respect of the debtor if:
In some circumstances, an insolvent company may be able to resolve its financial issues without resort to bankruptcy; where this is possible, the debtor and all stakeholders are usually better served through a restructuring than a bankruptcy. In general, a restructuring provides a better return to creditors than a bankruptcy, and permits a company to continue operating for the continued benefit of its creditors, customers, and employees.