Management and Organizational Studies 2275A/B Chapter Notes - Chapter 27: Unsecured Creditor, Secured Creditor, Personal Bankruptcy

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 2275A/B
• Professor: Philip King

Document Summary

Division ii: if the proposal is not approved bankrupt (in the date which the proposal is refused for division i, division ii can try multiple times, arrangement under the ccaa, used when a corporation has a debt more than 5 million, ccaa proposal applies to both secured and unsecured creditors, after proposal is approved by the court and creditor debtor will be monitored by a major accounting firm, there is no specific term in proposal (anything can be in it, but if creditors don"t approve bankrupt, debtor in possession (dip): after proposal is approved, a lender might lend money to debtor to recover and requires to use its assets as collateral and has a priority in claims, remedies for creditors, secured creditor can seize its collateral and sell it to pay down its debt or appoint a receiver to take control of debtor"s business, unsecured debtor can sue, get repayment from guarantor, a supplier can stop supplying its supply, bankruptcy.