xNorth™, part of the Valtus Alliance, is connected to a global network of restructuring specialists, as legal frameworks and restructuring cultures differ widely across countries and continents. In this cross-border conversation, Benoît Créneau, CEO of xNorth™ – Executive Interim Management in Canada, shares insights from decades of experience in operational turnarounds and Interim Executive roles. Interviewed by Thaddäus Müller, Partner at FES Partners in China, Benoît discusses the flexibility of Canada’s legal framework, the danger of delayed action, and how interim leaders can create clarity and momentum in the most complex restructuring scenarios.
Canada offers one of the most pragmatic and commercially minded restructuring environments in the world - designed to keep businesses running while resolving financial distress. But in today’s volatile global economy, even well-structured systems demand fast, decisive leadership when crises emerge.
From cross-border insolvencies to PE involvement and the role of interim CFOs, this exchange offers a practical look into how Canada navigates corporate recovery - with speed, strategy, and a human touch.
Interview:
TM (Thaddäus Müller): Benoit, what makes the legal framework for insolvency and restructuring unique in your country?
BC (Benoît Créneau): Canada has a very business-oriented legal framework when it comes to restructuring. The two main tools are the Companies’ Creditors Arrangement Act (CCAA) for larger businesses and the Bankruptcy and Insolvency Act (BIA) for smaller ones. What’s unique is how flexible and pragmatic the system is. Under the CCAA, for example, companies in distress can stay in control of their operations during the process. That means they can keep the business running while negotiating with creditors, which helps protect jobs and enterprise value. Courts here are commercially minded and generally supportive of solutions that aim to stabilize the company and maximize recovery.
TM (Thaddäus Müller):In your experience, what is the most common mistake companies make in the early stages of a liquidity crisis?
BC (Benoît Créneau): The biggest mistake is waiting too long. Many leadership teams are overly optimistic or assume they can fix things internally. But by the time the cash crunch becomes urgent, it’s often too late to negotiate with lenders or suppliers from a position of strength.Another frequent issue is focusing only on cost-cutting without stepping back to look at the bigger picture, like the business model, pricing strategy, or customer mix. I’ve seen companies cut travel, delay small investments, or pause hiring, thinking they’re being cautious, while continuing to lose money on unprofitable contracts or outdated operations. As we often say here in Canada, it’s a classic case of being ‘penny wise but pound foolish.’ You end up saving in the wrong places while the real issues remain untouched. In these situations, I always encourage leadership to challenge assumptions and tackle the structural problems early.
TM (Thaddäus Müller): At what point, and in what role, should an external restructuring expert be brought in – and who should mandate them?
BC (Benoît Créneau): An external expert should come in as soon as there are signs that the situation is more than just a temporary dip, persistent cash flow issues, missed targets, creditor pressure, or internal misalignment. Typically, this person comes in as an interim CFO, CRO, or COO, depending on where the biggest issues are. Ideally, the board or ownership should make the call. That creates legitimacy, helps align stakeholders, and shows that the company is serious about stabilizing the business. Early involvement also helps preserve optionality, whether that’s operational turnaround, refinancing, or preparing for a sale.
TM (Thaddäus Müller): How do Executive Interim Managers working in restructuring ensure they receive their remuneration in cases of insolvency or bankruptcy?
BC (Benoît Créneau): In most cases, Interim Managers are brought in before a formal insolvency process begins, so there’s time to structure the right agreement. We usually work with fixed-term contracts that include advance payments and milestone-based fees. In formal proceedings under the CCAA, if the interim role is part of a court-approved mandate, payment terms are clearly outlined, and protection is stronger. But generally, the key is to negotiate the right terms from the start and stay close to the cash situation throughout the mandate.
TM (Thaddäus Müller): Could you describe a recent restructuring or turnaround case in your country - or a cross-border case involving the Valtus Alliance?
BC (Benoît Créneau):One recent case involved a Canadian technology company facing both operational inefficiencies and growing financial pressure. We stepped in with an Interim Executive and led a quick diagnostic that revealed a misalignment between operations and commercial strategy - particularly around how contracts were priced versus how they were delivered. We implemented a rapid cost reset, renegotiated payment terms with key suppliers, and worked closely with the commercial team to review pricing models and contract structures, ensuring they accurately reflected delivery costs. We also improved working capital management to stabilize short-term liquidity. What made the difference was speed and clarity. Within 60 days, we stabilized the cash position and opened up strategic options, including discussions with a potential investor. Being part of the Valtus Alliance also allowed us to bring in international expertise when evaluating cross-border opportunities.
TM (Thaddäus Müller): Which case in your career has most profoundly shaped your view of restructuring – and what did you learn from it?
BC (Benoît Créneau): Early in my career, I worked on the turnaround of a subsidiary of a European group. The warning signs had been there, declining margins, operational issues, tension with the head office, but support came too late. By the time I stepped in, the local team was exhausted, and investor confidence was low. Despite that, we managed to remobilize the teams, rebuild trust, and get the business back on track. It was a real turnaround, but one that could have been less costly if action had been taken earlier. It taught me that timing is everything, and that in restructuring, people matter just as much as numbers. Alignment, communication, and quick wins are key to regaining momentum.
TM (Thaddäus Müller): In your jurisdiction, how efficient is the collaboration between management, creditors, and courts in formal restructuring proceedings?
BC (Benoît Créneau): Generally, the process works well in Canada. Courts are commercial, creditors are usually pragmatic, and there’s a solid framework to balance everyone’s interests. Where things can slow down is when management isn’t fully transparent or aligned internally. In those cases, trust breaks down quickly. But when there’s strong leadership and clear communication, I’ve seen very effective collaboration, even in complex situations involving multiple lenders and jurisdictions.
TM (Thaddäus Müller): In the event of a severe profitability and liquidity crisis, what would you consider the best course of action for a foreign corporation with a local subsidiary in your country?
BC (Benoît Créneau): The first step is to assess how insulated the local subsidiary is from the parent company’s challenges. These subsidiaries are often separated from the parent company, which can make it easier to stabilize or restructure them on their own. In Canada, I’d recommend bringing in a local Interim Executive to lead the diagnostic, engage local stakeholders, and help define options, whether that’s downsizing, exiting, refinancing, or preparing for a sale. Having someone local who understands the market makes a big difference in handling a crisis.
TM (Thaddäus Müller): How established is private equity in your country regarding restructuring?
BC (Benoît Créneau): Private equity plays a growing role in Canada’s restructuring landscape, especially when it comes to operational turnaround and special situations investing. That said, the market is still more conservative than in the U.S., for example. PE firms here are generally more active post-restructuring, coming in to acquire distressed assets, rather than leading the restructuring process itself. Banks and existing shareholders still play a key role in most early restructurings, but this is starting to change.
TM (Thaddäus Müller): Does your government support companies in crisis – for example, through specific subsidies or state-backed loans?
BC (Benoît Créneau): Direct support is limited in normal times, but during COVID, the government provided relief through programs like CEWS and CEBA. Outside of crisis periods, federal and provincial agencies, like BDC or Investissement Québec, can sometimes offer refinancing options, especially for SMEs or companies in strategic sectors. That said, most restructuring in Canada is privately led. The government may support retraining or regional employment programs but rarely steps into operational turnarounds directly.
About xNorth
xNorth™ is a Canadian Executive Interim Management firm, part of the Valtus Alliance — the world’s largest network for executive-level interim management. Led by partners who are themselves former executives, xNorth brings practical business experience and a structured methodology to every mandate. We provide organizations with seasoned interim leaders and executives across all functions to help them navigate periods of transformation, growth, or crisis. Combining a trusted network of experienced professionals with a proven approach, xNorth delivers hands-on leadership that creates impact quickly — strengthening leadership teams and guiding businesses through their most critical challenges.
