Concordat proposal
A composition proposal is a solution that allows a company in financial difficulty to reduce its debt and/or renegotiate the terms of its secured and unsecured debts. It is usually a settlement offer made to creditors, whereby they receive a fraction of what they are owed in exchange for a release in favor of the proposer.
With the help of the trustee and their 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 is why the professionals at BRESSE are best placed to explain in detail what it entails and answer all your questions.
Is the concordat proposal relevant for your company?
If any of these statements apply to your situation, a bankruptcy proposal may be the right solution for you.
The monthly payments demanded by your company’s creditors are too high.
Your business line of credit has been frozen by your bank.
The tax authorities have seized or are about to seize your bank account and/or your clients.
You are running out of cash.
You want to save your business.
The advantages of the settlement proposal
Significantly reduce your company’s debt
If accepted, the proposal could enable your company to quickly eliminate its debts by paying only a fraction of them.
The terms of payment for your secured debts can be renegotiated.
In many cases, secured creditors will agree to renegotiate the terms of repayment of your company’s secured debts.
Limit or even eliminate certain statutory financial responsibilities of directors
The responsibilities of administrators with respect to GST and QST are eliminated if a company’s proposal is accepted and complied with.
The proposal is binding on all your unsecured creditors.
Once accepted by the required majority, the proposal is binding on all unsecured creditors, even those who have rejected the offer.
The steps of a
bankruptcy proposal
Find out how the bankruptcy proposal works and what it means for your business.
During an initial meeting, your BRESSE advisor will assess your company's exact financial situation.
The terms of a potential offer will then be established based on your objectives.
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.
Your advisor will quickly send a copy of your company's proposal to your creditors. This proposal is accompanied by, among other things, a notice of a creditors' meeting, a balance sheet, a report from the trustee on the proposal, and a voting ballot.
Between the filing of the proposal and the creditors' meeting, your advisor will answer questions from your company's creditors and encourage them to vote on the proposal presented to them.
Approximately twenty-one days after the proposal is filed, a meeting of your company's creditors is held. At this meeting or at an adjournment thereof, a vote is taken.
If a majority representing two-thirds of the value of the 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 the process
Following acceptance by the required majority of creditors, the proposal is submitted 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 of the proposal is issued by the trustee and the process is complete.
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
"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
"When things started to fall apart, I didn’t know where to turn. I couldn’t sleep anymore, I was afraid I wouldn’t be able to pay my employees, and I saw my years of working 70+ hours a week slipping away. At my first meeting with Émile, I felt like I wasn’t alone anymore. He took the time to understand my reality, to speak with my bank and even with the tax agencies to find a viable solution."
Jonathan’s construction company
"Thank you to Émile and his team. I was taken care of the very same evening I contacted the Bresse team. In just under an hour, Martin broke down the problem and clearly explained the possible solutions to me."
Marie-Ève’s boutique
"Thank you to Martin and his team. I was taken care of the very same evening I contacted the Bresse team. In just under an hour, Martin broke down the problem and clearly explained the possible solutions to me."
Other solutions
Commercial bankruptcy
Business bankruptcy allows a company to cease operations while ensuring its liabilities are settled and future problems are avoided. In many cases, it is the most direct path to a fresh start.
Informal agreement with creditors
An informal agreement allows you to negotiate with your creditors for a debt reduction or an adjustment of repayment terms tailored to your company’s financial situation.
Notice of intention to make a proposal
A notice of intention temporarily suspends the payment of your debts, allowing the company to take a step back to assess its options before committing to financial restructuring.
Financial recovery
Financial restructuring involves thoroughly reviewing a company’s financial obligations and management to make it viable and competitive. This process helps identify concrete solutions to reduce debt burdens, improve profitability, and sustain long-term operations. The goal is to restore the company’s strength, enabling it to face the future on a solid and sustainable foundation.