In making a proposal under the Bankruptcy and Insolvency Act, a composition would be most attractive to a creditor where

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A composition proposal is a plan put forward by a debtor to its creditors to pay off its debts over a period of time, typically three to five years. A composition would be most attractive to a creditor where they will receive more if the debtor is permitted to continue to operate under the proposal than if the debtor is forced into bankruptcy. This is because in a bankruptcy, the debtor's assets are liquidated, and the proceeds are distributed amongst the creditors. In a composition, the debtor is allowed to continue operating, and the creditors will receive a portion of the profits generated over the term of the proposal. If the debtor can generate enough profit to pay off the debts in full and has a good track record of making payments, a composition proposal may be a better choice for the creditor.

In Making a Proposal Under the Bankruptcy and Insolvency Act