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Originally Posted by mrkajz44
Maybe I'm wrong, but I thought the whole reason of CCAA was to prevent creditors from getting anything for a short time period (2 years or so), so the company could hopefully turn things around and restructure?
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Quote:
Originally Posted by Weitz
Yah my parent company was just in CCAA protection (chapter 11 in the US) and we took about 5 or 6 months to restructure and came out of it essentially all good now as far as I know. A couple investors/creditors got screwed but the banks are happy for the most part I think.
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The intention is to restructure, which usually means creditors take a big haircut. However, the list of failed CCAAs that turn into straight liquidation bankruptcy/receiverships is probably way longer than the successes.