If a class of creditors or the Court does not approve the Plan, the company does not automatically go into bankruptcy

Canwest shareholders get to vote, if creditors get to vote?
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http://www.pwc.com/ca/en/car/what-is-ccaa.jhtml

Quote, "The Companies' Creditors Arrangement Act (commonly referred to as the "CCAA" or the "CC, double A") is a Federal Act that allows financially troubled corporations the opportunity to restructure their affairs. By allowing the company to restructure its financial affairs, through a formal Plan of Arrangement, the CCAA presents an opportunity for the company to avoid bankruptcy and allows the creditors to receive some form of payment for amounts owing to them by the company."

Quote, "If a class of creditors or the Court does not approve the Plan, the company does not automatically go into bankruptcy, but the Stay is lifted. However, once the Stay has been lifted, the pressures that caused the company to initially file for CCAA protection from its creditors will likely return and, accordingly, it is quite likely that the company will be placed into receivership or bankruptcy."

Companies' Creditors Arrangement Act, R.S.C. 1985, c. C-36

http://www.canlii.org/en/ca/laws/stat/rsc-1985-c-c-36/76610/rsc-1985-c-c-36.html#history
-36.html#history


[27] Court approval under this section of the Act is only required if those threshold requirements are met. If they are met, the court is provided with a list of non-exclusive factors to consider in determining whether to approve the sale or disposition. Additionally, certain mandatory criteria [There are multi frauds & several GAAP disclosure failures.] must be met for court approval of a sale or disposition of assets to a related party. Notice is to be given to secured creditors likely to be affected by the proposed sale or disposition. The court may only grant authorization if satisfied that the company can and will make certain pension and employee related payment

[Judge must address that the senior bonds, are junior bonds; not an arms length transaction.]
35] In my view, not every internal corporate reorganization escapes the purview of section 36. Indeed, a phoenix corporation to one may be an internal corporate reorganization to another. As suggested by the decision in Pacific Mobile Corp[11]., a court should in each case examine the circumstances of the subject transaction within the context of the business carried on by the debtor.