Launching a Business Proposal (Division I Proposal) is a statute mandated method of making a compromise or restructuring of the debts of a business. If a Proposal is approved at a meeting of creditors by special resolution and subsequently approved by the Court, the terms of the Proposal become binding on all creditors. If the Creditors reject a Division I Proposal , the debtor is deemed to be bankrupt. We can advise you on this method of restructuring debt as well as other legislated methods such as The Companies Creditors Arrangement Act.
- A Notice of Intention filing followed by the filing of a Proposal creates a stay of proceedings against your creditors until a meeting of creditors is held.
- Permits a debtor to make a proposal to all creditors that permits the business to be restructured or wound up in an orderly fashion.
- Once Approved, a Proposal is binding on all creditors.
Each of our Partners offers expertise and knowledge to the creation and delivery of successful Division I Proposals, including Manufacturing, Retail and other businesses.
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