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Using data from financial reorganization plans filed by insolvent Canadian firms, we estimate the discount rate implicit in the unsecured creditor's reorganization decision. Using (HARA) utility functions, we find the implicit monthly discount rate of creditors to be 4.9%, which corresponds to...
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This chapter is intended to provide a concise and current summary of corporate bankruptcy and reorganization in Canada …, under the Bankruptcy and Insolvency Act and the Companies’ Creditors and Arrangements Act. Consumer bankruptcy and …
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adjustment statutes had been found to be invalid by courts as encroaching on Parliament’s power over bankruptcy and insolvency … Supreme Court of Canada. However, section 6 of the FSA was not found ultra vires as encroaching on the federal jurisdiction … over insolvency, and instead was struck down as legislation in relation to interest, another federal area of jurisdiction …
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