Directors’ Charges under the CCAA: Where are We Going and Why?
|Area||Corporate Restructuring, Litigation|
Article originally published by Thomson Carswell
Excerpt from "Directors’ Charges under the CCAA: Where are We Going and Why?":
On September 29, 2008, the S&P 500 suffered its largest one day drop since 1987, while the intraday point decline of the Dow Jones industrial average was the largest ever. Though the Dow Jones surged on October 13th to post its biggest one day point gain ever, those gains were preceded by a week where it lost 18 percent of its value. In Canada, during the last two weeks of September and the first week of October of 2008, the S&P/TSX Composite Index lost 6.1 percent, 10.9 percent, and 16.1 percent, of its value respectively. Such calamity does not bode well for the financial health of companies in North America, especially when the failure of financial institutions around the globe - Lehman Brothers' petition for Chapter 11 protection being only the most sensational example - could potentially cause a "full-blown credit crunch."