To find out, I spoke with Jeffrey Carhart, partner of the law firm Miller Thomson. He is a respected expert in the area of corporate bankruptcy and insolvency.
According to Carhart, perhaps the simplest way to consider the differences is to think about who is in control of the insolvent company?
Generally speaking, the Companies Creditors Arrangement Act or the CCAA is the Canadian equivalent of Chapter 11 in the United States. It is a system where the debtor itself can remain in control of its affairs under the supervision of the court and with the benefit of a stay of proceedings.
One of the unique features of the Canadian systems is that you have a Monitor who will fill a supervisory role. You do not have Monitors under Chapter…
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