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A company is regarded as technically insolvent if it is unable to meet its current obligations. Such insolvency may be temporary and subject to remedy with a bankruptcy proposal in Vancouver or one of our other 4 offices throughout BC.

Many failing firms can be reorganized with a proposal to the gain of creditors and shareholders. Although the major purpose of a liquidation or reorganization in Vancouver or elsewhere is to protect creditors, the interests of the owners are also considered.

If the outlook is sufficiently hopeless, liquidation may be the only feasible alternative. If there is little prospect for profitable operations, creditors will want to liquidate the company and take whatever losses they must at the time. The causes of financial difficulty may be related to internal or external causes:

  • Inadequate sales
  • Competitive weakness
  • Poor location
  • Business operating factors
  • Management
  • Heavy operating expenses
  • Inventory difficulties
  • Receivables difficulties
  • Excessive amount of fixed assets
  • Disaster, neglect, fraud

When the underlying cause is external, and there is no way for management to curtail losses, the inevitable result is liquidation; and a proposal is not what you would want to do.

For your free consultation about business proposals in Surrey, be sure to visit one of our 5 locations located in VancouverSurreyVernonPrince George and Victoria. Contact us today for more information!

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