More Canadian Firms Than Ever Are Seeking Creditor Protection

A record number of Canada’s largest businesses are seeking protection from creditors, a testament to the strains companies are under because of the coronavirus pandemic, Bloomberg News reported. In the three months through June, 27 firms were granted protection under the Companies’ Creditors Arrangement Act, a federal law that gives insolvent corporations that have debt of more than C$5 million ($3.7 million) an opportunity to restructure and avoid liquidation. That’s the most in any quarter since 2009, which is as far back as the data are available, according to the Office of the Superintendent of Bankruptcy. Read more.