Nov. 19, 2024 - In this issue of Insolvency Now, we report on the data trends we are seeing so far in 2024 compared with when we first started tracking data in 2019. Key Takeaways: Overall, we are seeing a marked increase in filings, but we are not yet seeing the level of sector-specific distress...
Guide
Navigating Uncertainty: The Impact of Tariffs and Economic Shifts on Canadian Insolvencies
Davies Insolvency Now, Issue 12
In this issue of Insolvency Now, we continue to report on data trends from Q3 and Q4 of 2024, during which we noticed that the number of insolvency filings had steadily decreased compared with the previous year, returning to Q2 and Q3 2023 levels.
Key Takeaways:
- U.S. tariffs on Canadian goods, along with retaliatory measures, have heightened economic uncertainty, causing increased closures and insolvencies in cross-border trade sectors, resulting in an historically high number of companies seeking protection under the CCAA.
- While lower levels of insolvency filings suggest healthy business operations and domestic demand, the Bank of Canada’s January Policy Report warns of relatively weak levels of business investment.
- While growth in government spending was strong through much of 2024, it is estimated to have eased in Q4.
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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...
