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’s 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 corporate restructuring options, including informal compromises with creditors, workouts and more sophisticated options such as proposals under the Bankruptcy and Insolvency Act, or court proceedings under the Companies’ Creditors Arrangement Act.
Advice for Failing Businesses
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’s 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.
Connect With Our Firm
Please contact our firm by calling 604-642-6422 or by completing a short online form.