A Division I Proposal is an agreement between a business and its creditors to restructure its debt. If the creditors agree to the terms of the proposal and it is approved by the Court, the Division I Proposal will become legally binding.
When a business is viable but financially unstable, restructuring its debt under a Division I Proposal could:
• save the business
• allow the business owner(s) to retain ownership in the company
• provide a strategy for dealing with CRA obligations
• retain jobs
• maximize creditors returns
• improve relationships with secured creditors
• provide an ongoing source of business for existing and new suppliers
A Division I Proposal could be right for your current situation. Give us a call and we can find out together.
Thank you very much for all your help and giving us pointers.Marguerite and Jeff