Figure 8: Privately Appointed Receiverships in Canada by Volume Figure 8: Privately Appointed Receiverships in Canada by Volume
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CCAA Proceedings in Canada In 2024, there were a total of 117 CCAA proceedings in Canada. This number of proceedings indicates that CCAA proceedings in Canada continue to hover around historically high levels of activity, keeping pace with a total of 120 CCAA proceedings in Canada during 2023 (see Figure 9). From 2020 to 2022, government assistance programs provided billions of dollars in funding for businesses nationwide, aiming to mitigate the economic impact of the COVID-19 pandemic. These measures provided a crucial lifeline to many companies, but also allowed certain “zombie” firms – that is, firms that have persistent or irreversible profitability issues – to continue operating. As we look ahead to 2025, the expected tightening of fiscal budgets in Canada and around the world is expected to result in reductions in business funding and public consumption. Therefore, insolvency activity will likely accelerate over the next year, which will contribute to the reallocation of resources from less competitive business models and from zombie firms to more productive uses. While full details of new government support programs to deal with tariff effects await the outcome of the federal election, it would be helpful if this second round of relief measures does not repeat previous efforts and seeks rather to implement economic support measures that are restricted to “healthy companies.”
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Davies Insolvency Now: Issue 12
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