Insolvency and restructuring proceedings in Canada involve complex legislation and common law rules and different insolvency regimes are often confused to be the same thing. When a company is unable to fulfill its obligations (financial or otherwise), we often hear the common parlance that such company is “bankrupt” or subject to “bankruptcy proceedings”. The distinction, however, between different insolvency regimes is critical, particularly where the intention is to restructure as opposed to liquidate these companies. This paper offers a high-level summary of the recovery practice in Canada.

This paper was presented at LESA’s Debtor/Creditor Disputes webinar on May 11, 2021.