When Filing for Bankruptcy in Canada :: essays research papers

This received a 27/28 in my OAC law class so, have a blast..... WHEN FILING FOR BANKRUPTCY IN CANADA The law sometimes seems to pervade all aspects of our lives and an involvement with bankruptcy and insolvency law has proved to be almost unavoidable for business people in Canada during the 1990's. In simplest term, corporate and individual bankruptcy law provides a set of rules to prevent chaos among the creditors of an insolvent corporation or individual. The legislation is a complex in part because those creditors fall into so many categories-secured creditors, unsecured creditors, government creditors, and so on-each with its own special rights and interests in the bankruptcy process. Canada's federal bankruptcy statute, the Bankruptcy and Insolvency Act, also deals with corporate receivership. A receivership is not the same as a bankruptcy. By the same token, a receiver is not the same as a trustee in a bankruptcy. However, the two systems have a lot in common and a receivership of an individual or a corporation usually occurs at the same time as a bankruptcy. Corporations that have become insolvent can try to avoid bankruptcy and receivership by reorganizing their finances. The Bankruptcy and Insolvency Act deals with reorganizations and another federal statute, the Companies' Creditors Arrangement Act, may offer relief to some corporations. Some of Canada's biggest news stories of the past few years have concerned the attempts of major Canadian companies such as Olympia & York, Algoma Steel, Grafton Fraser, Woodwards, Westar Mining, and Birks, to complete reorganizations. But the most well known companies were both Air Canada and Canadian Airlines. Air Canada, Canadian Airlines, and United Airlines are all commercial passenger air carriers. Beyond that, they have only a few similarities. All are old commercial carriers that were facing bankruptcy together until the Canadian Postal Service approved air travel for Canadian Mail in 1925. There, they reached a point of divergence that continues today. AIR CANADA Time Magazine's November 17, 1958 cover sported a diagonal banner across one corner reading "Jets Across Canada." (Goutierez, 1997). At the time of the article's publication, "Air Canada had earned a reputation as an industry leader, and this, coupled with the high-profile leadership of 'Mr. C.R.,' made Air Canada's imminent transcontinental jet service the catalyst for an exciting new era. Time wrote that although Pan Am had already flown jets across the Atlantic, C.R. Smith and Air Canada would usher in the 'Jet Age' for most Canadians with the introduction of