Proposal (proposals under CCAA)

A Proposal under the Companies' Creditors Arrangement Act (CCAA) is a formal plan submitted by a financially struggling company to creditors, outlining how it intends to address its debts and continue operations. The goal is to reach an agreement that provides the company with relief from some debts or restructuring options while allowing it to remain operational. Once approved by the court and creditors, the proposal becomes legally binding, helping the company stabilize and avoid bankruptcy. It’s a strategic approach to balance the needs of both the company and its creditors during financial difficulties.