Companies' Creditors Arrangement Act

The Companies' Creditors Arrangement Act (CCAA) is a Canadian law that helps financially struggling companies reorganize their debts and operations while protecting them from creditors. This act allows businesses to negotiate a plan to pay their debts over time, rather than facing immediate bankruptcy. By doing so, companies can continue operating, preserve jobs, and create a better chance of recovery. The process involves court supervision, ensuring that stakeholders, including creditors and employees, have a say in the plan's development. Ultimately, the goal is to facilitate a viable business turnaround while balancing the interests of all parties involved.