NIQP 401

  1. Q. What are 3
    options available to any company in financial difficulty?
    • 1-3 A.
    • Restructuring (CCAA, Div 1)

    Orderly Liquidation (CBCA or WURA)

    • Forced
    • Liquidation (Bkcy or R’ship)
  2. Q. Name 5 things a monitor or financial advisor can
    assist a company with
    1-4 A Preparing cash flow forecasts

    Arranging for valuations

    Preparing a communication plan

    Meeting with key stakeholders

    Obtaining DIP financing
  3. Q. Name situations where an informal restructuring might be viable
    • 1-5 A.
    • Where:

    -the company has relatively few creditors, with common interests

    -no secured creditors, or the secured creditors support the restructuring

    -financial difficulties are identified early

    -company has a detailed and comprehensive business restricting plan

    -company has a detailed communication plan

    -management has credibility with creditors
  4. Q. What can be achieved through informal negotiations/restructuring?
    1-5 &1-6

    • A.
    • - Revising lending agreements with secured creditors (compromise of interest, terms, collateral)

    -Compromising or deferring amounts owed to unsecured creditors

    -Revising lease obligations

    -Negotiating with labour unions
Card Set
NIQP 401
NIQP 401 flashcards