Submissions to Government

Letter to MPs - Bill C-281

December 15, 2004

Re: Bill C-2811 First Reading November 15, 2004

We applaud the initiative of the Honourable Member from Winnipeg Centre in putting insolvency reform on the agenda of the 38 th Parliament. Our Association welcomes insolvency reform but it is not taking sides on the issues Bill C-281 raises. There are many stakeholders and issues involved when a company is in financial distress. Bill C-281 addresses only one set of issues, and would result in significant changes in the administration of insolvency proceedings, and the results that these proceedings would produce.

We further note that Bill C-281 addresses only the Bankruptcy and Insolvency Act (BIA), and administrations completed under that statute. It does not deal with situations where there are no bankruptcy proceedings, such as a realization of security under provincial laws, or in a larger restructuring carried out under the Companies Creditors' Arrangement Act (CCAA) .

In addition, the issues of labour are not the only areas where insolvency reform is needed. During the last session, the Standing Committee on Banking Trade and Commerce conducted an extensive review of the BIA and the CCAA, and produced a report on their work in November 2003. The Canadian Association of Insolvency and Restructuring Professionals (CAIRP) made major submissions on both business and personal insolvency reform. Our submissions may be found on the CAIRP web site at

• Submissions to Government ( En )
• Submissions to Government ( Fr )

We have appeared as witnesses before the Committee and are committed to continuing our efforts to provide a professional and balanced view of the necessary changes to the legislation affecting both individuals and corporations. Our submissions included comments on the balancing of interests and the priority of labour claims which are the subject of Bill C-281.

Our members act as trustees in bankruptcy, receivers, monitors, agents and consultants in insolvency and restructuring matters. Our mandate is to work within the bankruptcy and insolvency laws to obtain the best results for all stakeholders in the process. We believe that our members' experience offers a valuable perspective on how to rebuild success and we welcome the opportunity to work with labour, government, lenders and other stakeholders to create solutions that will enhance Canada's competitiveness.

In summary our message is twofold:

1. We urge Parliament to proceed with implementing a full package of legislative reform in bankruptcy and insolvency.

2. CAIRP continues to offer the expertise and experience of the insolvency and restructuring profession as an active participant in the reform process.

We look forward to working with you in a reform process that meets the objectives of all stakeholders.

Yours very truly,

William A. Courage, CACIRP

Chartered Insolvency and Restructuring Professional

Chair, Canadian Association of Insolvency and Restructuring Professionals

1 An Act to amend the Bankruptcy and Insolvency Act, the Canada Business Corporations Act, the Employment Insurance Act and the Employment Insurance Regulation