CCAA

Understand the CCAA in Canadian real estate and finance — how it supports large corporate restructurings, delays foreclosures, and manages insolvency risks.

CCAA



What is the CCAA?

The Companies’ Creditors Arrangement Act (CCAA) is a federal law that allows large insolvent corporations in Canada to restructure their debt and continue operations under court protection.

Why the CCAA Matters in Real Estate

In Canadian commercial real estate and finance, the CCAA enables companies owing more than $5 million to avoid bankruptcy by negotiating with creditors and restructuring debt.



Key features of CCAA proceedings:
  • Provides legal stay of proceedings against the debtor
  • Involves court supervision and a monitor (usually an accounting firm)
  • Facilitates asset sales or operational reorganization
  • Requires approval of a restructuring plan by creditors and court



The CCAA is often used by large real estate developers, REITs, or commercial landlords facing liquidity issues.



Understanding the CCAA helps stakeholders assess restructuring outcomes and real estate impacts during financial distress.

Example of the CCAA in Action

The struggling commercial landlord filed under the CCAA to restructure leases and delay foreclosure while seeking new capital partners.

Key Takeaways

  • Applies to insolvent companies with over $5M in debt
  • Offers restructuring instead of liquidation
  • Court-monitored and creditor-approved process
  • Common in commercial real estate and development
  • Protects value and preserves operations

Related Terms

Additional Terms

Recourse Loan

A recourse loan is a type of loan where the lender can pursue the borrower’s personal assets, beyond the collateral, in the event of default.. more

Pari Passu

A pari passu clause is a contractual provision ensuring that multiple creditors share equally in repayment priority from the borrower’s assets.. more

Non-Recourse Loan

A non-recourse loan is a type of loan where the lender’s only remedy in case of default is to seize the collateral property; the borrower is not. more

Net Operating Income

Net operating income (NOI) is the total income generated by a property after operating expenses are deducted but before taxes and financing costs.. more

Mechanic's Lien

A mechanic’s lien is a legal claim by a contractor, subcontractor, or supplier for unpaid work or materials provided for a property.. more

Lis Pendens

Lis pendens is a legal notice filed in the land registry indicating that a property is subject to ongoing litigation that may affect its title.. more

More For You

Fiera Looks To Swap Office Space For Purpose-Built Rental In 62-Storey Tower On Bay
Renderings of 1075 Bay Street/Hariri Pontarini Architects

Despite securing Council approvals for the site in October 2021, Fiera Real Estate has reworked its plans for 1075 Bay Street in downtown Toronto, according to new planning documents from mid-August. The site, which is on the southeast corner of Bay and Mary streets, just a ten-minute walk from the Royal Ontario Museum, has been occupied by a 13-storey office building since 1976.

If Fiera’s proposal is realized, the unassuming mid-rise will be replaced with a sleek 62-storey skyscraper — one that will fit in well with the heavily windowed high-rises that are increasingly cropping up in the city’s core — with a purpose-built rental component.

Keep ReadingShow less
An Infinity Pool, Flybridge, And 600 Ft Of Shoreline Await At This $5.7M Estate

Along North Saanich’s storied Lands End Road lies a property that perfectly captures the essence of West Coast luxury.

The striking steel-and-concrete residence that is 1580 Lands End Road sits on 1.59 acres of private land, boasting over 600 feet of ocean frontage and uninterrupted views that stretch from Mount Baker to the Gulf Islands. Both bold and serene, it’s a home designed to frame the drama of the Pacific while offering a peaceful retreat from the everyday.

Keep ReadingShow less
Industry Gets Candid About Housing Crisis At Fifth Annual RESCON Summit
Shutterstock

Yesterday afternoon, over a dozen real estate and development experts were featured at the Residential Construction Council of Ontario's (RESCON) fifth annual Housing Summit, and talked candidly about the housing crisis and how to get residential construction back on track. This year's summit was aptly named "Embracing Transformation — Building Homes Faster" and was sponsored by LiUNA Local 183, Enbridge, Federation of Rental-housing Providers of Ontario, Toronto Regional Real Estate Board (TTREB), and EBS Global.

Leading a wide array of discussions included big names like Ontario Minister of Municipal Affairs and Housing Rob Flack, TRREB's Chief Information Officer Jason Mercer, and they tackled everything from automation and robotics in construction to policy changes needed to support more rental housing development.

Keep ReadingShow less
ELM Developments Is ‘Looking Forward’ With Its Distressed Real Estate Division
Rendering of the Elevate Condos in Kitchener, which ELM Developments took over in late-2024/ABA Architects Inc.

At Insolvency Insider's Distressed Real Estate Conference held this summer, panellists across the board agreed that the Canadian real estate landscape over the next two to three years will continue to be fraught with receiverships, CCAAs, and general distress. At the time, President of ELM Developments Elliot Steiner’s contribution to the conversation was that the focus should be on the ‘what comes next’ of it all. “The market is what it is,” he postulated.

Steiner spoke to attendees about ELM’s work on the Elevate Condos in Kitchener, a four-tower project that was placed under receivership in October 2023. ELM — through its construction arm ELM Forward, which is dedicated to third-party projects — was brought on to stabilize the project, but ended up teaming up with Genesis Mortgage Investment Corporation — the junior lender — and Dorr Capital Corporation to submit a bid, and the transaction was approved by the Ontario courts in October 2024.

Keep ReadingShow less
Inside The Underline: The Bentway’s Sister Project In Miami Is A Case Study For Success

The Underline / © Sam Oberter

As Toronto continues to make progress on the Gardiner Expressway’s rehabilitation, there is a groundswell of support for retrofitting the under-highway as well—including spaces like the Bentway that transform overlooked infrastructure into vital public space. While transformation of the Gardiner’s understory is a long-term ambition, it’s important to reflect on the concept itself, and where that concept has already found success.

Miami’s The Underline is somewhat of a “sister project” to The Bentway, an ongoing effort to reimagine the 10-mile stretch of land beneath the city’s elevated Metrorail into a network of parks, trails, flexible programs, and public spaces.

Keep ReadingShow less
Holt Meadow

It’s no secret that the real estate industry has been historically slow to change with the times. But, with today’s evolving end-user expectations, change is inevitable. This is even more true when it comes to the modern tenant experience – especially in our current purpose-built rental boom.

But on the flip side, there’s still something significant to be said about good old-fashioned customer service (and real human connection).

Keep ReadingShow less
Will Build Canada Homes Actually Build Homes, Or Just Hope?
Mark Carney/X

This article was written and submitted by Carl Laffan, a Toronto-based architectural design manager specializing in office, residential, mixed-use projects.

On September 14th, the federal government launched Build Canada Homes (BCH) — the “one-stop shop for affordable housing” that promises a “bold new approach and unprecedented investments to increase the housing supply in Canada.” The new federal agency has already proposed several positive initiatives and immediate investments that promise to deliver up to 45,000 new factory-built homes.

Keep ReadingShow less
Condo To Rental Pivot Gains Momentum In GTA With ‘Big Behind-The-Scenes Push’
Shutterstock

It may have been a steamy summer at times, but the Greater Toronto Area’s new condo market was anything but, and isn’t showing signs of warming up any time soon. In fact, Tuesday brought a new report from RBC Economist Robert Hogue describing “a deep freeze with pre-construction sales plummeting to levels not seen since the global financial crisis.” Hogue also spoke to a “long road to recovery” that will only come with an improvement in the economy and a sharp drop in supply.

With the region’s condo sector indefinitely stalled, there’s been increasing chatter around pivoting those projects to rental, and many developers have already taken the plunge. According to data provided to STOREYS by real estate analytics firm Urbanation, nine GTA projects that had been actively selling as condo have been converted to rental since the beginning of 2024. That translates to 1,778 individual units.

Keep ReadingShow less