We are asked from time to time to assist with the dissolution of an existing registered charity.  However, often we suggest to our clients that it might be better for them to either amalgamate the existing charity into another charity or keep it in existence but inactive.

There are various reasons why charities wish to dissolve.  Sometimes the problem that they were established to address has been solved.  Sometimes there is no leadership left to govern or manage the charity.  Other times the work once done by the charity has been taken over by another charity.

Debtor in Possession (“DIP”) financing is essentially new bridge financing that is provided to a corporation as it undergoes insolvency proceedings. The term exists because the corporation maintains possession of its assets during this process as opposed to having a bankruptcy trustee take possession. The concept derived from the United States of America where DIP financing is expressly provided for under c.11 of the Bankruptcy Code and allows a bankrupt corporation to incur new debt for the purposes of carrying on business operations.