CORPORATE INSOLVENCY SOLUTIONS FOR OTTAWA BUSINESSES
CORPORATE DEBT STRESS INDICATORS
There are several primary warning signs that your corporation is struggling or may soon be in financial difficulty:
Accumulation of lines of credit that have not yet been repaid making interest only payments
Operating expenses disproportionate to revenue
Difficulties in collection of receivables
Are unable meet payroll expenses
Aging of payables and suppliers pressuring for payments
Becoming unable to pay a monthly rents and leases on time
Missing statutory payments for payroll taxes; HST; and WSIB
A declining customer base which management is unable to identify causes to correct.
The Corporation may also be facing legal action as a consequence of any of the above factors. Defending any actions can become very costly. At D. & A. MacLeod Company Ltd., we have the expertise and knowledge to assist you and your company through these difficult times and if financial issues are recognized in time, start on a road to a new beginning™.
SHOULD I FILE FOR CORPORATE BANKRUPTCY?
Deciding to declare bankruptcy or explore other options will depend on the severity of the situation and your ability to employ new techniques related to debt. Your decision will depend on the percentage of total liabilities the corporation has as a result of operating the business and the ability to repay. If the operations are not viable or cannot be restructured, and all other options have been exhausted, then bankruptcy may be the company’s only option. Our experienced team will evaluate the current situation and guide you in assisting the directors making a decision for the company, whether this be filing for corporate bankruptcy, or pursuing a corporate proposal.
Depending upon the nature of the corporation’s obligations, a bankruptcy can rearrange the priority of statutory creditors, which may mitigate director liability and personal guarantees.
DIVISION 1 CORPORATE PROPOSALS
In order to file for bankruptcy protection, you will need to seek out a Licensed Insolvency Trustee (LIT). In some cases, the Board of Directors may decide the company should first file a Notice of Intention (NOI) which will allow time to develop a restructuring plan or if company is in the position to by-pass filing a NOI, prepare and file a proposal to its creditors known as a Division 1 Proposal. On filing, there will be an immediate stay of creditor actions against your business. This means that creditor calls and collection notices will stop, as will foreclosures, repossessions in most cases and any debt-collection lawsuits while you create a business plan which enables you to pay as much of the debt as you can.
OPTIONS FOR CORPORATE INSOLVENCY IN OTTAWA
Corporate bankruptcy can be complex because each type of industry has unique requirements. With over 70 years of experience, our team at D. & A. MacLeod Company Ltd. understands this and has the knowledge to help your company decide on its next steps, including exploring all options that may be available. With multiple conveniences in Eastern Ontario, we are available to meet where it is most convenient for you.
Visit us today in Ottawa, Cornwall, Kingston, Kanata, Smiths Falls, Pembroke, or Brockville. Contact us today online or at 613-236-9111 for a free, confidential consultation to learn more about your debt recovery solutions as a corporate business.