Economics
More Canadian Firms Than Ever Are Seeking Creditor Protection
- Number of companies restructuring under CCAA reaches record
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Canadian retailer Aldo Group Inc. was among the companies that received CCAA protection in the second quarter of 2020.
Photographer: Hollie Adams/BloombergThis article is for subscribers only.
A record number of Canada’s largest businesses are seeking protection from creditors, a testament to the strains companies are under because of the coronavirus pandemic.
In the three months through June, 27 firms were granted protection under the Companies’ Creditors Arrangement Act, a federal law that gives insolvent corporations that have debt of more than C$5 million ($3.7 million) an opportunity to restructure and avoid liquidation. That’s the most in any quarter since 2009, which is as far back as the data are available, according to the Office of the Superintendent of Bankruptcy.