Composition proposal
A proposal is a solution that enables a company in financial difficulty to reduce its indebtedness and/or renegotiate the terms of its secured and unsecured debts. It is usually an offer of settlement made to creditors, under which they receive a fraction of what is owed to them in exchange for a release in favor of the proposer.
With the help of the trustee and his staff, you can draw up a complete assessment of your company’s financial situation, identify the source(s) of the difficulties and prepare a recovery plan or proposal.
The proposal is governed by law and administered by your licensed insolvency trustee. That’s why the professionals at BRESSE are in the best position to explain the details of the proposal and answer any questions you may have.
Does the proposal make sense for your company?
If any of these statements apply to you, a proposal may be the right solution.
The monthly payments demanded by your company’s creditors are too high.
Your company’s line of credit has been blocked by your bank.
The tax authorities have seized or are about to seize your bank account and/or your customers.
You’re short of cash.
You want to save your business.
The advantages of a proposal
Reduce your company’s debt significantly
The proposal, if accepted, can enable your company to quickly eliminate its debts by paying only a fraction of them.
The payment terms of your secured debts can be renegotiated.
In many cases, secured creditors will agree to renegotiate the repayment terms of your company’s secured debts.
Limiting or even eliminating certain statutory financial responsibilities of directors
Directors’ GST and QST responsibilities are eliminated if a company’s proposal is accepted and complied with.
The proposal binds all your unsecured creditors
Once accepted by the required majority, the proposal is binding on all unsecured creditors, even those who have refused the offer.
The stages
of a proposal
Find out how the proposal works and what it means for your company.
Assessing your company’s financial situation
During your first meeting, your BRESSE advisor will assess your company’s exact financial situation.
The terms of a potential offer are then determined based on your objectives.
Proposal submission
A proposal drafted in collaboration with your advisor is signed and filed with the Office of the Superintendent of Bankruptcy. The proposal is then officially in effect.
Notify your creditors of the proposal
Your advisor quickly forwards a copy of your company’s proposal to your creditors. This proposal is accompanied by, among other things, notice of a meeting of creditors, a balance sheet, a trustee’s report on the proposal and a ballot.
Between the filing of the proposal and the creditors’ meeting, your advisor answers questions from your company’s creditors and encourages them to vote on the proposal presented to them.
Meeting of creditors
Approximately twenty-one days after the proposal is filed, a meeting of your company’s creditors is held. At this meeting, or at any adjournment thereof, a vote is taken.
If a majority in number representing 2/3 in value of unsecured creditors votes in favor of the proposal, it is accepted. The proposal becomes binding on all unsecured creditors, even if they voted against it.
End of process
Court Approval of the Proposal –
End of the Process
Once accepted by the required majority of creditors, the proposal is presented to the court for formal approval. Barring extraordinary circumstances, this step is a formality.
Once the terms of the proposal have been met, a certificate of full performance is issued by the syndic, and the process is completed.
Real-life cases of corporate debt resolved thanks to our expertise.
Find out how BRESSE has been able to offer tailor-made solutions for every situation.
Mélanie and Karine’s dispute
Informal proposal - Agreement without procedure
"Thank you to the BRESSE team for taking the time to explain the options available to me. The solution suggested by my professional enabled me to avoid bankruptcy."
Jean-François’ company’s lack of liquidity
Notice of intent to make a proposal
"When things started to deteriorate, I didn't know where to turn. I couldn't sleep, I was afraid I wouldn't be able to pay my employees, and I could see my years of working more than 70 hours a week - falling by the wayside. When I first met Émile, I felt I was no longer alone. He took the time to understand my reality, talk to my bank and even the tax agencies to find a viable solution."
Jonathan’s construction company
Sales proposal
"Thanks to Martin and his team. I was taken in hand the same evening I contacted the Bresse team. In barely an hour, Martin streamlined the problem and clearly explained my possible solutions."
Marie-Ève’s boutique
Commercial bankruptcy and consumer proposal
"A huge thank you to the entire BRESSE syndics team, for their discreet and effective support, which enabled me to regain my stability and protect my family."
Other solutions
Commercial bankruptcy
Bankruptcy is a way of winding down a business while ensuring that liabilities are settled and future problems avoided. In many cases, it's the most direct route to a fresh start.
Informal agreement with creditors
The informal agreement enables you to negotiate with your creditors a reduction in debt or an adjustment of repayment terms tailored to your company's financial situation.
Notice of intention to make a proposal
The Notice of Intention temporarily suspends payment of your debts, allowing the company to take a step back and evaluate its options before committing to a financial turnaround.
Financial recovery
Financial turnaround involves an in-depth review of the company's financial obligations and management to make it viable and competitive. This exercise enables concrete solutions to be found to alleviate the burden of debt, improve profitability and preserve the business in the long term. The aim is to give the company the solidity it needs to face the future on a sound, sustainable footing.