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COVID-19

FAQs FOR BUSINESSES FACING FINANCIAL CRISIS

The current pandemic is not just a health crisis. The economic slowdown created by COVID-19 has pushed entire sectors of the economy into financial crisis.

We don’t know much about viral pandemics, but we do know a lot about financial crisis, and what options are open to struggling businesses. We regularly advise financially-challenged businesses on the solutions available to them.

We regularly advise financially-challenged businesses on the solutions available to them.

On this page you will find a list of blog posts designed to answer Frequently Asked Questions that arise for businesses during economic downturns with specific reference to the situation created by the pandemic.

We will be adding to this content on a regular basis so check back often.

Retail businesses continue to suffer

In the last week three more well-known retailers have been forced to seek creditor protection amid the pandemic-related shrinkage in consumer spending. Geox Canada, a shoe and clothing retailer with 30 stores, has seen its sales for the first half of 2020 drop to half that of 2019. Its restructuring under the Bankruptcy and Insolvency Act will focus on store closings and stronger e-commerce.

Extension of the Redemption Period in Foreclosure Actions and Dueling Valuations

After the expiration of the “usual” six month redemption period in a foreclosure action in British Columbia, the mortgagee will generally apply for an order for conduct of sale with respect to the subject property. However, where the mortgagor believes that the subject property has ample value to satisfy the mortgagee’s claim, the mortgagee may apply for an extension of the redemption period.

Director's Liability and COVID-19

Question: It seems likely that my business will fail, given the COVID-19 recession we’re in. Fortunately, the business was carried on through a corporation, but as a director do I face any personal exposure despite incorporation?

Cannabis Businesses and Insolvency – A Whole New Frontier

The legal cannabis industry is a relatively new addition to the Canadian economy since its introduction in November 2018. Until December 2019 there had been very few insolvency proceedings commenced by cannabis companies but 2020 has seen at least 6 such insolvency proceedings ranging from receiverships to BIA proposal proceedings to CCAAs. With the onslaught of the COVID-19 pandemic...

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