Companies Creditors Arrangement Act (CCAA)

The Companies' Creditors Arrangement Act (CCAA) is a Canadian law that provides financially distressed companies with a legal process to restructure and avoid bankruptcy. It allows a company to negotiate with its creditors under court supervision, giving it time to develop a turnaround plan while protecting it from immediate creditor actions like lawsuits or asset seizures. The goal is to help the company regain stability, preserve jobs, and maximize value for creditors. The CCAA is typically used by large corporations facing significant financial difficulties seeking a controlled and collaborative way to manage their debt and operational challenges.