Fiset et Associés Syndic inc (Syndic Autorisé en Insolvabilité-SAI)

Licensed Insolvency Trustee

 phone :  418-781-2120

Notice of Intent to Make a Proposal

Bankruptcy and Insolvency Act

Who is Eligible to Make a Notice of Intention to Make a Proposal?

  • Insolvent corporation or company
  • Partnership (SENC)
  • Insolvent individual – physical person

The Notice of Intention is a legal process that allows an insolvent company or person to restructure without the risk of litigation, seizure and/or recovery proceedings by their creditors. Generally, it is used by insolvent persons who are profitable or have an ability to become profitable with continuity of their operations. Following the filing of a Notice of Intention, the ultimate objective is the acceptance of a creditor proposal and the continuity of operations.

Who is Authorized to Act as Administrator of the Notice of Intention to Make a Proposal?

A Licensed Insolvency Trustee.


What is the Duration of the Notice of Intention?

  • The maximum duration is 6 months
  • Following the filing of the Notice of Intention, the initial protection is for 30 days. After the initial 30 days, the Court may authorize an extension each 45 days for 45 days, to a maximum of 6 months.

What Kind of Circumstances Justify Recourse to the Notice of Intention to Make a Proposal?

  • A finding that the company is insolvent, i.e., unable to meet its obligations coming due and lack of liquidity.
  • Inadequate financing jeopardizing the future operations of the company.
  • Late filing and payment of tax returns (DAS-TPS-TVQ-taxes) and seizure of bank accounts and accounts receivable by tax authorities.
  • Notice of the exercise of a mortgage remedy by your secured creditor including a 10-day notice provided under section 244 of the Bankruptcy and Insolvency Act.
  • Court proceedings and/or seizures by creditors.
  • Losses due to bad debts.
  • Problems with production or starting up a new production system that has led to financial losses.
  • Large customer losses and/or decreased turnover.
  • Problems controlling operating costs.
  • Negative events beyond the control of the insolvent person.
  • Applications to the Court by creditors requesting insolvency proceedings.
  • Illness striking managers or key personnel.

Advantages: Notice of Intention to Make a Proposal

  • The legal remedies of secured and unsecured creditors, with certain exceptions, are legally suspended, which prevents seizures of assets, seizure of wages and other recovery measures by creditors.
  • Insolvent persons retain their assets and continue their operations in the normal course of business without pressure by creditors.
  • The Notice of Intention period allows for the negotiation of new creditors' payment agreements and the rebuilding of business relationships with creditors prior to the filing of a proposal.
  • Insolvent persons may obtain temporary funding approved by the Court.
  • Unprofitable business contracts can be terminated.
  • Unsuccessful commercial leases can be terminated.
  • The Notice of Intention allows the insolvent person to take the time to properly prepare the proposal, meet with his creditors and ensure a favourable vote following the submission of a proposal.

Bills Piling Up?

Call our insolvency professionals today.

Fiset et Associés Syndic inc (Syndic Autorisé en Insolvabilité-SAI)  

455 Grande Allée Est, OFFICE 100

QuEbec, QC G1R 2J5

418-781-2120


EMAIL

F.BONHOMME@NOTARIUS.NET

BUSINESS HOURS

Monday - Friday 08:30 AM - 05:00 PM

Emergency appointments available

SERVICE AREA

  • Quebec
  • Montréal
  • Laval
  • Bas-du-fleuve
  • Gaspésie
  • Chaudière-Appalaches
  • Centre-du-Québec
  • Beauce


Send to a friend

Send the url of this page to a friend of yours