The economic conditions caused by the COVID-19 pandemic are unprecedented: unemployment is up, consumer confidence is down, countless businesses have permanently closed and many others are barely holding on. Yet the number of bankruptcies of individuals and small and medium-sized businesses has plummeted since the pandemic was declared earlier this year. Unusual as this might seem, this trend is evident throughout the developed world.
In this report, we provide a detailed analysis of the data on insolvency filings available in Canada, situated in historical, geographic and sectorial contexts.
We analyze the key trends that have emerged in bankruptcies, proposals, receiverships and arrangements under the Canada Business Corporations Act and filings under the Companies’ Creditors Arrangement Act.
Finally, we offer a look ahead to what we might expect in the post-pandemic era.
2023 Business Insolvencies in Canada
Mar. 05, 2024 - As we predicted in earlier issues of Davies Insolvency Now, the year 2023 reflected the anticipated increase in business insolvency activity. In this issue, we perform a comparative review of business insolvencies from 2023, examine the fluctuating volume and decreasing asset values, look...
Business Insolvency on the Rise in Canada: Understanding the Role of AI
Oct. 12, 2023 - The first half of 2023 saw a significant increase in business insolvencies as economic sectors responded to uncertain financial conditions in Canada and around the world. In this issue of Davies Insolvency Now, we examine the impact of this rolling recession by sector and region. We...
