Skip to main content

How Small Businesses Can Avoid Bankruptcy

January 27, 2009

News Releases


    TORONTO, Jan. 27 /CNW/ - A weak economy can be a hazard for any business:
Suppliers begin to demand quicker - if not up-front - payment. Customers begin
to stretch their payables - or stop buying, period. In the middle is the
cash-starved entrepreneur who can't make ends meet. For some, bankruptcy
becomes the only way out. But it doesn't have to be that way. When otherwise
strong companies run into cash-flow problems, they usually just need to buy
some time to get their fiscal house in order - and there are laws that exist
for that very reason.
    Michael MacNaughton is a Toronto-based partner in the insolvency and
restructuring group of Borden Ladner Gervais LLP, Canada's largest law firm.
    He joins the latest episode of Canada's leading small business podcast to
talk about protections available to companies.Topics include:
    -   the most common threats that companies face in tough times
    -   threats that surprise companies and catch them off guard
    -   financial red flags
    -   when an entrepreneur should seek relief from creditors
    -   what kind of relief to seek out - negotiating on your own, CCAA
        protection or making a Division 1 proposal under the Bankruptcy Act
    -   dealing with any stigma attached to being under CCAA protection
    -   the best sources of help in financial distress situationsThe Business Coach podcast offers insight and information to help
entrepreneurs run their small business better. Launched in October 2006, The
Business Coach podcast is available for download from iTunes, and The Business Coach is co-produced by PROFIT Magazine and BMO
Bank of Montreal.
    Previous episodes of Canada's leading podcast for small business include:
Riding the Entrepreneurial Roller Coaster, Strategic planning, Tax Tips,
Crisis Communication, Going Global, Managing Generation Y, Recession-proofing,
Lessons from the Dragons' Den, Personal Finance, Better Workplaces, Social
Media, Tax Planning, Going Global, Retiring Rich, Cash Management, Fortune
Hunters, Economic Outlook, Search Engine Optimization, Selling Your Business,
Marketing Taglines, Currency Hedging, IT Security, Community Investment and
Small-Business Branding.
    The Business Coach podcast is offered in both English and French. The
English-language interviews are hosted by Ian Portsmouth. L'actualité
magazine's Pierre Duhamel leads the French-language episodes.

    About PROFIT

    PROFIT: Your Guide to Business Success is Canada's preeminent publication
dedicated to the management issues and opportunities facing small and
mid-sized businesses. For more than 25 years, Canadian entrepreneurs across a
vast array of economic sectors have remained loyal to PROFIT because it's a
timely and reliable source of actionable information that helps them increase
their revenues, boost their profitability and get the recognition they deserve
for generating positive economic and social change. Published six times a year
by Rogers Publishing Ltd., PROFIT is distributed almost exclusively to the
chief executives of companies with 5 to 250 employees and annual revenue of $1
million to $25 million, reaching more than 300,000 readers across Canada.
Visit PROFIT online at