The CCAA has been described as being similar in nature to
Chapter 11 proceedings in the United States and to
administration proceedings and
company voluntary arrangements ("CVAs") in the United Kingdom. Differences between the various proceedings include the following highlights:
| Action |
CCAA (Canada) |
Chapter 11 (US)[59][60] |
Administration (UK)[61] |
CVA (UK)[62] |
| Applicable to |
Insolvent companies (or affiliated groups) with debts greater than $5 million |
Any debtor |
Any company that is or is likely to become unable to pay its debts |
Any company, whether insolvent or not |
| Initiated by |
Insolvent company (or creditor), upon application to the court |
Insolvent person, upon application to the court |
Company, its directors, or a holder of a floating charge (either
unilaterally or on application to the court), or any other creditor (on
application to the court) |
The directors of a company |
| Scope of plan |
Within the court's discretion |
As prescribed by law |
As proposed by the administrator and approved at a meeting of the company's creditors |
As proposed by the directors and approved at meetings of the company and of its creditors, and then approved by the court |
| Stay of proceedings |
Upon order of the court |
Automatic upon filing |
May be lifted in specific cases with consent of administrator or permission of the court |
If requested by the directors to the court |
| Debtor-in-possession financing |
Allowed |
Allowed |
Not available |
Not available |
Notable CCAA proceedings
Relevant cases
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