The report also explores how Canadian businesses are adapting to economic pressures through the strategic use of restructuring law. BIA proposals and CCAA proceedings are being used more flexibly, sometimes in sequence. “It’s not unusual, frankly, to see a proceeding start as a proposal proceeding and then convert to a [CCAA] once the strategy becomes clearer,” MacParland says.
She cites the Body Shop Canada case as a recent example on which her firm has advised. “It was triggered by external circumstances in the UK, and so the Canadian company had to react fairly quickly,” she says. “So that’s why we filed a proposal proceeding there, but then we ultimately converted it to CCAA in order to…
