Ch27_3e - 27-1Copyright 2007 by Nelson, a division of...

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Unformatted text preview: 27-1Copyright 2007 by Nelson, a division of Thomson Canada Limited.CANADIAN BUSINESS CANADIAN BUSINESS AND THE LAWAND THE LAWThird EditionThird EditionbybyDorothy Duplessis Steven Enman Shannon OByrne Sally GunzPresentation prepared by Presentation prepared by Allan Elliott, Southern Alberta Institute of TechnologyAllan Elliott, Southern Alberta Institute of Technology27-2Copyright 2007 by Nelson, a division of Thomson Canada Limited.CHAPTER TWENTY-SEVENCHAPTER TWENTY-SEVENBANKRUPTCY AND INSOLVENCYBANKRUPTCY AND INSOLVENCYOBJECTIVES:The legal aspects of business failureThe rights and obligations of debtors and creditors when a business failsThe stages in the bankruptcy process27-3Copyright 2007 by Nelson, a division of Thomson Canada Limited.BUSINESS FAILUREBUSINESS FAILURETHERE ARE FOUR POSSIBLE OUTCOMES FOR FINANCIALLY TROUBLED BUSINESSESthe debtor and creditor may agree to a proposalthe debtor can make an assignment in bankruptcysecured creditors can appoint receiverscreditors can petition the debtor into bankruptcy27-4Copyright 2007 by Nelson, a division of Thomson Canada Limited.NEGOTIATED SETTLEMENTNEGOTIATED SETTLEMENTSETTLEMENTS DEBTOR OPTIONScan be more or less formal depending on the circumstanceskey to negotiated settlements is ensuring that all creditors agree to the arrangementwhen the parties reach an agreement, it is typically concluded with a contract that binds all27-5Copyright 2007 by Nelson, a division of Thomson Canada Limited.ADMINISTRATION OF ADMINISTRATION OF BANKRUPTCYBANKRUPTCYBANKRUPTCY AND INSOLVENCY ACTSuperintendent of Bankruptcy the most senior ministerial appointment with general supervisory authority for all functions prescribed under the Bankruptcy and Insolvency ActOfficial Receiver the administrative officer legally responsible for all aspects of the bankrupts estate27-6Copyright 2007 by Nelson, a division of Thomson Canada Limited.ADMINISTRATION OF ADMINISTRATION OF BANKRUPTCYBANKRUPTCYBANKRUPTCY AND INSOLVENCY ACTtrustee in bankruptcy the officer assigned legal responsibility by the official receiver for administering the bankrupts estateinspector a person appointed by creditors to act on their behalf and supervise the actions of the trusteeestate the collective term for the assets of the insolvent or bankrupt27-7...
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This note was uploaded on 12/19/2010 for the course AFM 231 taught by Professor Briggs during the Winter '09 term at Waterloo.

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Ch27_3e - 27-1Copyright 2007 by Nelson, a division of...

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