Companies’ Creditors Arrangement Act (CCAA)

The CCAA is the federal restructuring statute. A “debtor company” under it is a company that is bankrupt or insolvent, among other things, and the Act applies where total claims against it, determined under s. 20, pass the amount in s. 3(1) or any other prescribed amount. A buyer of assets outside the ordinary course of business from a company under a CCAA order needs the court to authorize the sale. See buying assets from an insolvent company.

What it means for a buyer

• Section 36(1): a debtor company under a CCAA order may not sell or dispose of assets outside the ordinary course of business unless the court authorizes it
• Section 36(6): the court may authorize a sale free and clear of any security, charge or other restriction, and if it does, it also orders other assets or proceeds to be subject to a security, charge or restriction in favour of the affected creditor
• Section 11.3: on the debtor company’s application, and on notice to every party to the agreement and the monitor, the court may assign the company’s rights and obligations under an agreement to a person it specifies who agrees, subject to the exceptions and restrictions in that section

Where to look

The Office of the Superintendent of Bankruptcy supervises certain matters under the CCAA and maintains a public record of BIA and CCAA filings. See also a bankruptcy and insolvency search.