BIA vs.

CCAA

BIA CCAA
Method  Proposal  Plan of compromise or arrangement.
Who  Insolvent person  “Debtor Company”  must be insolvent or
 Bankrupt bankrupt BUT test for insolvency is probably
 Any receiver broader
 Claims over 5M
Exclusions  Trust companies, banks, insurance companies,
railway companies, loan companies.
Start of Process  Notice of Intention  Initial application to the Superior Court of
 Proposal to Creditors Justice (Commercial List)
 By way of Notice of Application.
Extensions  Must file proposal within 30 days of NOI 
can extend to a max of 6 months total.
Order  None  Court makes an initial order and appoints a
monitor
 Monitor sends notice to all creditors
Stay of Proceedings  Automatic once proposal or NOI is filed.  Discretionary, not automatic
 Continues until it expires or the court  30 days + unlimited extensions granted by the
terminates it. court
During the Stay  No contracts may be terminated with the debtor  No contracts may be terminated with the debtor
because insolvent or NOI or proposal has been because insolvent or NOI or proposal has been
filed. filed.
Classification of Creditors  Must be made to unsecured  Plan does not need to be made to unsecured.
 May be made to secured
 Proposal does not need to be made to all
secured.
Meeting of Creditors  Within 21 days of proposal  Application to the court to permit a meeting of
creditors to vote on the proposal
 Court does not have to grant creditors meetings
if not satisfied.
Approval  Double Majority  numeric majority of voters  Double Majority
in each class; 2/3 majority in value in each  Every class of creditors to whom the plan is
class made must be approved in order for the plan
to pass

Failure to Receive Approval  Automatic bankruptcy  No automatic bankruptcy.

Court Approval  Required after proposal is accepted  Required after plan is accepted

Effect of Approval  Proposal is binding on all creditors of a calls  Plan is binding on all affected creditors.

Flexibility  Less  More

Judicial Intervention + Cost  Less  More

Conversion to the other  Yes if no proposal has been filed yet  No

process