Any Canadian corporation with outstanding issues of bonds may avail itself of the Companies' Creditors Arrangement Act,rather than make an assignment in bankruptcy under the Bankruptcy and Insolvency Act.

Question

Quizplus · Accepted Answer

The statement is true. The Companies' Creditors Arrangement Act (CCAA) is a federal law in Canada that allows corporations to restructure their affairs and debts under court supervision. It is an alternative to bankruptcy under the Bankruptcy and Insolvency Act (BIA). Any corporation with outstanding bonds can file for CCAA protection.

Any Canadian Corporation with Outstanding Issues of Bonds May Avail