Insolvency Solutions

Asset-sheltering strategies

Business people face business risks: a contract gone wrong, a non-paying customer or a bad investment. The risk of financial calamity is part of being in business. Although creditor claims cannot be avoided entirely, the consequences of those claims can be reduced through careful planning. A number of techniques exist to shelter assets from the claims of creditors, in the right circumstances.

Gehlen Dabbs provides advice on such strategies, helping clients preserve wealth and limit their exposure to business risk.

Bankruptcy

Gehlen Dabbs provides bankruptcy expertise to a wide range of clients, including trustees in bankruptcy, receivers, secured and unsecured creditors, directors, employees, corporate and individual debtors and shareholders. We represent clients in court in a wide variety of bankruptcy matters including contested bankruptcy hearings, priority disputes, reviewable transactions, claim disallowances and contested discharges.

Bankruptcy is not the only option open to businesses and individuals facing financial challenges, however, and we give advice on all available options and which one is best for each client’s circumstances.

Corporate restructuring

Helping troubled businesses recover from financial difficulties is a particularly rewarding part of our practice. In many cases, the complete collapse of the business is a worst case scenario for all stakeholders, not just the owners of the business, but also the creditors and employees. Assets typically are liquidated for a fraction of their true value, returning less to the business’ creditors. But worse, the future value of the business is wiped out. The suppliers to the business lose a customer, its landlord loses a tenant, its workers lose their jobs.

By avoiding bankruptcy where possible, more value can be returned to all these stakeholders in a true “win-win”. Even where a recovery is not possible, timely advice on the options available can help maximize value for all.

Gehlen Dabbs regularly advises businesses on restructuring options including informal compromises with creditors and more sophisticated options such as proposals under the Bankruptcy and Insolvency Act, or court proceedings under the Companies’ Creditors Arrangement Act.

The principals of a failing business often face additional personal challenges. Are they liable as directors of the company for unpaid wages, or unremitted source deductions? Are they liable on personal guarantees given to lenders and other creditors? Gehlen Dabbs gives advice on these questions, helping a business’ principals plot out a course to minimize the impact of business failure on their personal lives and property.

Early advice on the options available to the business is critical to a successful restructuring. Windows of opportunity for a business can close before the decision-makers have even had a chance to explore what opportunities exist. Accountants and solicitors advising the business can be invaluable in identifying early warning signs and helping business decision-makers realize that they have options.

Creditor’s remedies

Gehlen Dabbs assists creditors in enforcing and collecting debts owing to them, from demand and negotiation, through judgment, to execution. We conduct examinations in aid of execution, levy garnishments of wages or accounts and work with bailiffs in seizing and selling assets.

Throughout the collection process, we emphasize practical, cost-effective solutions to maximize the net benefit to our clients.

Distressed business acquisitions

One business’ failure can be another business’ opportunity. Assets of insolvent businesses frequently sell for a fraction of their going concern value, and this can be a bonanza for the right purchasers.

However, buying assets from a receiver or bankruptcy trustee can involve special risks and issues. Gehlen Dabbs works with purchasers and their solicitors to help them structure transactions that emphasize benefits and avoid pitfalls.

Foreclosure

We act for lenders and debtors in a wide array of foreclosures, from simple residential foreclosures to complex commercial situations involving numerous parties with competing securities and priority disputes.

Security recovery, including receiverships

A complicated regime exists in British Columbia for the recovery of assets secured by a lien, charge or other security interest, regulated primarily by the BC Personal Property Security Act.

Gehlen Dabbs advises lenders, receivers, trustees in bankruptcy and debtors on all aspects of security enforcement. Whether through private security realization or court-appointed receivership, we have the knowledge and experience to provide timely, effective advice to our clients.

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