What is a commercial proposal?
Like a consumer proposal, a commercial proposal is an alternative to bankruptcy. The business, through a trustee, makes an offer to its creditors to pay so many cents on the dollar over time. Or the business may undertake to re-pay 100% of what it owes while gaining a moratorium, say six months, before payments must begin. The idea behind a proposal is to create a win-win situation. The business wins because it survives intact. The creditors win because they are paid at least some of what they are owed, whereas in a bankruptcy they would probably receive nothing.
