Bankruptcy - Corporate Services
Restructuring & Turnarounds
Unfortunately many companies find themselves in financial difficulties and surviving these financial difficulties can be a daunting task. Ira Smith Trustee & Receiver Inc. has helped many companies to not only survive, but prosper. Our corporate restructuring and turnaround strategies not only deal with short term crisis management but the long term viability of corporations.
What is corporate restructuring?
Corporate restructuring is a strategy that is employed to remove a corporation from financial harm and return it to a financial viable entity.
What is restructuring under either the Companies' Creditors Arrangement Act or the Bankruptcy and Insolvency Act?
The Companies' Creditors Arrangement Act (CCAA) is a Federal Act that allows financially troubled corporations the opportunity to restructure their affairs through a formal Plan of Arrangement and avoid bankruptcy. Compromises are reached with creditors.
The Bankruptcy and Insolvency Act (BIA) also allows financially troubled corporations to restructure and reach compromises with their creditors through a formal Proposal, and avoid bankruptcy.
What is the turnaround?
When a company in financial distress is able to recover after restructuring, it is referred to as the turnaround.
What brings about the turnaround?
There are many factors that contribute to a corporate turnaround; organizational, operational and financial are the key components. The fundamental underlying problems that caused and contributed to the financial distress must be identified and addressed after which a plan must be put into place to restructure the company and affect the turnaround. Turnaround strategies and financial restructuring solutions may include providing a Chief Restructuring Officer to oversee and support the plan implementation.