Hardie & Kelly Business BankruptcyBusiness Bankruptcy


The Companies’ Creditors Arrangement Act (the “CCAA”) is federal legislation enacted to allow a corporation or a group of corporations (the “Debtor Company”) with in excess of $5 Million of debt an opportunity to restructure its financial affairs by ultimately presenting a Plan of Arrangement to its creditors for consideration.

The CCAA process is initiated by way of an application to Court for an Initial Order which provides for a “stay of proceedings” preventing creditors from continuing or commencing any actions against the Debtor Company to allow an opportunity for the Debtor Company to attempt to restructure.

The Initial Order provides for the appointment of a Court Appointed Monitor to oversee the Debtor Company’s restructuring efforts and report on the progress of same to the Court and the creditors.

Hardie & Kelly has served in the role of Court Appointed Monitor in numerous engagements including the successful restructurings of Canadian Superior Energy Inc. and Darian Resources Ltd. in which creditors received 100 cents on the dollar, plus interest.

Proposal to Creditors

Companies may also attempt to restructure their affairs by filing a Proposal (“Proposal”) under Division 1 pursuant to the Bankruptcy and Insolvency Act. A company will often pursue this restructuring remedy when its debt obligations are less than $5 Million disqualifying it from restructuring under the CCAA.

A Licensed Insolvency Trustee is appointed to oversee the company’s restructuring efforts and report on its progress to the creditors.
As Licensed Insolvency Trustees, Hardie & Kelly has served in the role as Trustee under a Proposal on numerous occasions.


Generally speaking, the appointment of a Receiver to take possession of the assets of a company is a remedy taken by a secured creditor (or in some instances shareholders) to enforce its rights seeking repayment of a company’s obligations.

Receivership proceedings are most often commenced by way of an application to Court for an Order appointing a Receiver; however, in some instances a Receiver is “privately” appointed by a secured creditor pursuant to the terms of a security agreement.

Hardie & Kelly has served as Receiver in a numerous engagements in a variety of industries including oilfield services, oil and gas exploration and production, real estate development, waste and recycling, high-tech, retail and aviation.

Bankruptcy Proceeding

A bankruptcy proceeding can be initiated by either a company assigning itself into bankruptcy or by a creditor petitioning the Court for a Bankruptcy Order to be granted against a debtor company (the “Debtor”). In both instances a Licensed Insolvency Trustee (LIT), formerly referred to as Bankruptcy Trustee, is appointed over the assets of the Debtor.

A company may assign itself into bankruptcy when management has determined that there is no opportunity for to restructure the company’s affairs as a means of providing for an orderly liquidation and distribution of its assets under the direction of a Licensed Insolvency Trustee.
The petitioning of a company into bankruptcy is generally a remedy instituted by an unsecured creditor not holding any security over the company’s assets with a view to placing the assets under the control of a LIT in an effort to recover funds.

Hardie & Kelly served as the Licensed Insolvency Trustee in numerous engagements in a variety of industries including oilfield services, oil and gas exploration and production, high-tech and retail.

Financial Consultant

Hardie & Kelly has acted as financial consultant to lenders and debtor companies to review the financial position of a Debtor Company and provide recommendations as to potential courses of action with a view to resolving financially distressed situations.