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Ease of Doing Business in

Canada

Canada Download Profile (1716KB, pdf)
Region OECD high income
Income Category High income
Population 35,851,774
GNI Per Capita (US$) 47,500
City covered Toronto

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 22 20 down
2
78.57 78.79 down
0.22
Starting a Business 2 2
-
98.23 98.23
-
Dealing with Construction Permits 57 53 down
4
73.66 73.70 down
0.04
Getting Electricity 108 105 down
3
63.76 63.76
-
Registering Property 43 43
-
75.40 75.40
-
Getting Credit 7 7
-
85.00 85.00
-
Protecting Minority Investors 7 6 down
1
76.67 76.67
-
Paying Taxes 17 15 down
2
88.86 88.86
-
Trading across Borders 46 46
-
88.36 88.36
-
Enforcing Contracts 112 95 down
17
54.35 56.54 down
2.19
Resolving Insolvency 15 15
-
81.43 81.36 up
0.07

DB 2017 Rank:

15

DB 2016 Rank:

15

Change in Rank:

0

DB 2017 DTF (% points):

81.43

DB 2016 DTF (% points):

81.36

Change in DTF (% points):

up0.07

Indicator Canada OECD high income
Recovery rate (cents on the dollar) info_outline 87.4 73.0
Time (years) info_outline 0.8 1.7
Cost (% of estate) info_outline 7 9.1
Outcome (0 as piecemeal sale and 1 as going concern) info_outline 1 ..
Strength of insolvency framework index (0-16) info_outline 11 12.1
  • Indicator Explanation Answer
    Recovery rate (cents on the dollar) 87.4
    Proceeding Mirage management will initiate reorganization proceedings under the Bankruptcy and Insolvency Act, most likely in consultation with the Bank. This will give the hotel the best chance to continue operating and allow Mirage to restructure its operations, raise money from additional sources or negotiate with the current creditors. reorganization
    Outcome Continued operation of a restructured business or sale as a going concern are the most likely outcomes of the restructuring proceedings. More than half of the businesses undergoing insolvency in Canada survive the proceedings as a going concern. BizBank (secured creditor) will be interested in maximizing the value of the hotel and unsecured creditors will likely support a restructuring plan as the only way to receive satisfaction of their claims. going concern
    Time (in years) It takes 9 months to complete reorganization proceedings in Canada. Mirage would make an application to the court for reorganization under the BIA, and then Mirage´s reorganization plan would be negotiated and developed. The initial order granting protection under the BIA proceedings will contain a broad stay of proceedings against all creditors. The stay of proceedings is initially of 30 days and can be extended by court order. 0.8
    Cost (% of estate) Major expenses include attorneys' fees (around CAD 200,000) and remuneration of the insolvency representative (around CAD 250,000). 7.0
    Answer Score
    Strength of insolvency framework index (0-16) 11.0
    Commencement of proceedings index (0-3) 2.5
    What procedures are available to a DEBTOR when commencing insolvency proceedings? (a) Debtor may file for both liquidation and reorganization 1.0
    Does the insolvency framework allow a CREDITOR to file for insolvency of the debtor? (b) Yes, but a creditor may file for liquidation only 0.5
    What basis for commencement of the insolvency proceedings is allowed under the insolvency framework? (c) Both (a) and (b) options are available, but only one of them needs to be complied with 1.0
    Management of debtor's assets index (0-6) 4.5
    Does the insolvency framework allow the continuation of contracts supplying essential goods and services to the debtor? No 0.0
    Does the insolvency framework allow the rejection by the debtor of overly burdensome contracts? Yes 1.0
    Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0
    Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0
    Does the insolvency framework provide for the possibility of the debtor obtaining credit after commencement of insolvency proceedings? Yes 1.0
    Does the insolvency framework assign priority to post-commencement credit? (a) Yes over all pre-commencement creditors, secured or unsecured 0.5
    Reorganization proceedings index (0-3) 1.0
    Which creditors vote on the proposed reorganization plan? (b) Only creditors whose rights are affected by the proposed plan 1.0
    Does the insolvency framework require that dissenting creditors in reorganization receive at least as much as what they would obtain in a liquidation? No 0.0
    Are the creditors devided into classes for the purposes of voting on the reorganization plan, does each class vote separately and are creditors in the same class treated equally? No 0.0
    Creditor participation index (0-4) 3.0
    Does the insolvency framework require approval by the creditors for selection or appointment of the insolvency representative? Yes 1.0
    Does the insolvency framework require approval by the creditors for sale of substantial assets of the debtor? Yes 1.0
    Does the insolvency framework provide that a creditor has the right to request information from the insolvency representative? Yes 1.0
    Does the insolvency framework provide that a creditor has the right to object to decisions accepting or rejecting creditors' claims? No 0.0

Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”.