CCAA Proceedings

CCAA proceedings refer to the Corporate Capital Assistance Act, a legal process in Canada designed to help financially distressed companies restructure and avoid bankruptcy. During CCAA proceedings, a company works with a court-approved monitor and creditors to develop a plan to pay debts, reorganize operations, or sell assets. The process offers protection from creditor actions like lawsuits or asset seizures, allowing the company time to stabilize financially. Ultimately, CCAA aims to preserve the company's value, protect jobs, and maximize recoveries for creditors, often leading to a restructuring agreement or, if unsuccessful, liquidation.