TravelBrands Seeks Extension of Stay Period
TravelBrands Inc. has filed a request for an extension of the stay of proceedings from the Ontario Superior court of Justice under the Companies’ Creditors Arrangement Act until Feb. 29, 2016.
According to officials, the extension will allow TravelBrands to continue to operate the business as usual as it moves towards exiting from CCAA protection, and provides the time necessary to resolve a disputed claim from Gibralt Capital Corporation. A hearing date to determine the validity of the Gibralt Claim has been set for Jan. 5, 2016, which occurs after the expiration of the current Stay Period.
TravelBrands is confident it will receive a favourable outcome from the Jan. 5 hearing. The company would then exit CCAA via its Plan of Compromise or Arrangement, which would see all Affected Creditors paid in full, and which was overwhelmingly approved at a Meeting of Affected Creditors on Oct. 30. However, if the disputed Gibralt Claim cannot be adequately resolved, TravelBrands may revisit whether it is necessary to revoke the Plan and seek the Court’s approval of a sale process or credit bid.
Court-appointed Monitor, KPMG Inc., continues to oversee the business and financial affairs of the company and supports the extension of the Stay Period.
