SCARP can help protect a company from creditor legal action, but it does not create an automatic freeze on claims or enforcement in the way examinership does. In practice, creditors are not automatically prevented from taking legal steps simply because a company enters the SCARP process. However, the company can apply to court for protective orders where needed to support the rescue process. This means SCARP may offer protection from creditor action in certain cases, but that protection generally depends on court involvement rather than arising automatically at the outset.
