via GC.ca - Bankruptcy Definitions

In searching through the BIA, you begin to realize that the insolvency act may be resorted to, even though the company is not insolvent.

But the thing required now under the circumstances will be:

"Certificate of Full Performance of Proposal

When an insolvent person (debtor) meets the obligations outlined in the proposal, a Certificate of Full Performance of Proposal is issued by the Licensed Insolvency Trustee. Once the Certificate has been issued, the debtor is released from the debt included in the proposal."

There was no debt, therefore the company is not insolvent, therefore the company can be released from creditors since there was no debt. But the BIA needs to be resorted to to obtain a DIP financing, which changes the priority of the first ranking charge over all the assets of the company from the creditors to _______ ? (Which I believe to be part of an Asset Transfer)

So we should be expecting a certificate of full performance proposal.

https://www.ic.gc.ca/eic/site/bsf-osb.nsf/eng/br01467.html

-F6