Ratner's Service Centre encountered financial set backs over a period of time,and eventually found itself insolvent.Among its creditors were the first and second mortgagees of the land and building which Ratner's owned,trade creditors,employees who had not been paid wages,and the municipality,for arrears of property taxes.Ratner's decides not to make a proposal to its creditors.Trade Creditors share pro rata on the basis of "cents on the dollar" of their claims.

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If Ratner's does not make a proposal to its creditors and becomes insolvent, the distribution to creditors will most likely be done through a bankruptcy or insolvency process, where trade creditors will share pro rata on the basis of cents on the dollar of their claims. The first and second mortgagees will have priority in receiving payment over other creditors, and employees who are owed unpaid wages may also have priority under certain circumstances. The municipality may also have certain rights to claim arrears of property taxes.

Ratner's Service Centre Encountered Financial Set Backs Over a Period