Restructuring

• Author: Wela Quan
• Pages: 112-161

10.

RESTRUCTURING

(1)

REQUIREMENTS

\

AND

PROCESSES

\

(2)

KEY

FIGURES

IN

\

RESTRUCTURING

\

(A)

DIRECTORS

AND

THEIR

\

DUTIES

AND

LIABILITIES

\

1)

FIDUCIARY,

DUTY

OF

CARE

\

2)

OPPRESSION,

MISREPRESENTATION

\

3)

STATUTORY

\

(B)

MONITORS

(3)

BUSINESS

OPERATIONS

DURING

RESTRUCTURING

(4)

CCAA

CLAIMS

(5)

BIA

PROPOSALS

112

10.

RESTRUCTURING

Cl)

Requirements

ccncL

Processes

Regimes

VJe

kci\/c

completed

liquidation

regimes

including

bccnLruptcij

nnd

receiv'crship.

Now

we

turn

our

CLtteatioix

to

restructuring

regimes

under

tke

Compccnies

/

Creditors

Arrangement

/Vet

(CCAA)

cind

tke

&XA

tkrougk

proposals.

Z^i-F-Ferences

between

bccnkruptcij

nnd

restructuring

include:

BMK.KUPTCy

•

assets

vast

in

trustee

‘

assets

are.

liquidated

•proceeds

wt

distributed

based

On

legal

priorities

and

pari

ptixu

OMxxq

unsecured

Oreditars

REST^UCTC^/M

•debtor

CecndinS

in

Lorrhrol

of

-Hne

assets

/

bus

i

res

S

•skuj

of

Creditor's

ngVrfs

to

ailow

for

negotiation

•

specia\

powers

ore

granted

to

certain

rights

ot

parties

to

aiskst-

in

the

restructure

•

r

estructure

aqreernent

/

plan

uot+h

Créditos

113

•

Court

supervised,

fijerseen

toM

<

*

■

t^orn'hur

10.

RESTRUCTURING

CO

Requirements

clac

L

Processes

Objectives

"Chere

cere

several

di-F-Fcrent

objectives

o-F

restructuring;

the

most

importcLnt

one

is

minimÍT-ing

economic

hardship

to

employees

cind

society

at

large

when

a

compamj

-Fails.

Other

obJectives

include:

preserving

the

value

o-F

the

business,

helping

the

debtor

make

changes

to

the

business

so

that

the

debtor

maij

continue

to

run

the

business,

and

increasing

creditor

returns.

Un^xbxnaVelq,

voe

are

cestructuniAg

the

atn4

ipu

rOighb

have

fc>