Empirical Analysis of the Effectiveness of the Reorganization Procedures Under the BIA and the CCAA — Table of Contents

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Printable Version: Empirical analysis of the effectiveness of the reorganization procedures under the BIA and the CCAA (2005) (PDF Format — 1657 KB, 98 Pages)

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Study conducted for
the Office of the Superintendent of Bankruptcy

Jocelyne Gosselin
Benoit Mario Papillon

Fall 2005

Acknowledgements

We would like to thank the employees of the Office of the Superintendent of Bankruptcy who collaborated on this research; including Richard Archambault, for the speed with which he dealt with all of our numerous requests for information and data, and Dave Stewart, whose comments at the presentation of the preliminary results last August helped us to appreciate the fundamentals of the 1992 reform of the Act. We also had the support of OSB employees in the regional offices; including André Jobidon in Québec City, and in Montréal, Patricia Couture, who guided us through the files by answering our questions on the scope of the information available as we planned the data collection, and who later answered a variety of questions on the application of specific sections of the Act. A number of student assistants helped with information collection and analysis: Julie Fortin, Sofiene El Ouragini, Sandra Migneault, Fatima Tlemsani, Audrey Fortin and Jean-Claude Goute Koko. The services of Martin Morin, research professional at the Université du Québec in Trois-Rivières, were called upon for the production of the tables in Appendix A.

Trustees, controllers and lawyers specializing in insolvency have firsthand experience with legal reorganization procedures. All those we contacted agreed to meet with us and generously shared their knowledge by answering numerous questions. We would like to thank them even as we respect their wish to remain anonymous.

The authors are responsible for any errors of observation or interpretation that may be found in this report.

Table of Contents

• Acknowledgements
• Introduction
  • Background
  • Businesses and insolvency
  • Reorganization procedures, effectiveness, governance and information
  • Selection of cases and report plan
• Part 1: Effectiveness, Access to Reorganization Procedures and Governance
  • Defining effectiveness
  • Informational constraints and governance
• Part 2: Analysis of the Case Studies
  • Companies that have sought BIA protection
  • Companies that have sought CCAA protection
  • Information and control
• Conclusion
  • Scope of the research
  • Results and questions
  • Optimal choice between liquidation and BIA or CCAA reorganizations
  • Reflections on effectiveness
  • Recommendations
• Figures and Tables
  • Figures
  • Table 1 — General presentation of BIA cases
  • Table 2 — Causes of difficulties
  • Table 3 — Terms of the proposal
  • Table 4 — The results of creditors' voting
  • Table 5 — The results of the procedure
  • Table 6 — Quality and quantity of information available

• Appendix A
  Characteristics of the use of reorganization procedures under the BIA by incorporated businesses – Province of Quebec
  • Table A.2 – A.10
  • Table A.11 – A.20
  • Table A.21 – A.27
• Appendix B
  BIA case study (not included)
• Appendix C
  CCAA case study (not included)

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