What is a Commercial Proposal?
A commercial proposal is a legal process adopted under the Bankruptcy & Insolvency Act and consequently administered by a licensed insolvency trustee.
Is it Right for You?
A commercial proposal is an offer to pay creditors a percentage of the debt over a specific period of time and/or extend the payment period. This option offers several advantages, including protecting your business against seizure and stopping interest on the debt. To get more information and see if this is a viable option for you, contact one of our insolvency trustees.
Benefits of a Commercial Proposal
A well-executed business proposal allows for both parties the best of outcomes and avoids the pitfall of filing for bankruptcy. The business proposal can give your company a second chance, while giving creditors the chance at a larger payback in the long-term, compared to a bankruptcy filing.
Notice of Intention
If your situation is time-sensitive and your company fears potential and impending legal action from its creditors that would interfere or halt operations, a notice of intention can be a great choice. A Notice of Intention is a simple, clear document that alerts your creditors that a business proposal will be delivered to them within the next 30 days. During this 30-day period, Groupe Serpone will review all relevant company documents meticulously, allowing us to present creditors with a proper statement of company affairs. The 30-day period may be extended up to 6 months in order to allow your business to reorganize, update its finances and accounting information, seek potential investors or buyers, etc.
Reasons to File a Notice of Intention
- Impending asset seizures of the company or its bank account by creditors or tax authorities.
- Pressure from critical suppliers that prevent the company from operating.
- The threat of cutting off public services such as electricity and natural gas.