Chios Inc Is in the Business of Importing Luxury Goods

Chios Inc is in the business of importing luxury goods into Canada for the purpose of resale.The company prospered for many years.More recently, however, it has begun to struggle as a result of the government's decision to tighten up the laws governing the inspection and assessment of imported goods.When the government announced new amendments that will make the rules even more difficult to satisfy, Chios realized that, as currently structured, it has no hope of financial success in the future.The company therefore hopes to receive protection under the Companies' Creditors' Arrangement Act.As a matter of precedent, however, the company will not be entitled to that statutory protection unless and until it actually becomes insolvent.