Sears Canada re­ceives CCAA stay ex­ten­sion to Oct. 4

Stockwatch Daily - - FRONT PAGE - An anony­mous di­rec­tor re­ports

SEARS CANADA Inc. and cer­tain of its sub­sidiaries (the Sears Canada Group) have ob­tained or­ders from the On­tario Su­pe­rior Court of Jus­tice (Com­mer­cial List) that it was seek­ing in sup­port of its re­struc­tur­ing ef­forts un­der the Com­pa­nies’ Cred­i­tors Ar­range­ment Act (CCAA), in­clud­ing to ex­tend the stay pe­riod pro­vided by the ini­tial or­der to Oct. 4, 2017, and to launch a sale and in­vest­ment so­lic­i­ta­tion process (SISP) to seek out pro­pos­als for the ac­qui­si­tion of, or in­vest­ment in,

the Sears Canada Group’s busi­ness or as­sets. The SISP dead­line for bind­ing of­fers from par­ties in­ter­ested in pur­su­ing a trans­ac­tion is Aug. 31, 2017.

Agree­ment reached to main­tain cer­tain pay­ments and postre­tire­ment ben­e­fits

The com­pan reached an agree­ment with a va­ri­ety of stake­hold­ers and their coun­sel to main­tain spe­cial pay­ments to the de­fined ben­e­fit com­po­nent of the Sears reg­is­tered re­tire­ment plan, pay­ments in sup­port of postre­tire­ment health and dental ben­e­fits, and postre­tire­ment life in­sur­ance pre­mi­ums un­til Sept. 30, 2017. At that time, the com­pany ex­pects to have fur­ther clar­ity re­gard­ing the po­ten­tial out­come of its re­struc­tur­ing ef­forts un­der the CCAA.

Debtor-in-pos­ses­sion fi­nanc­ing ap­proved on a fi­nal ba­sis

The com­pany pre­vi­ously an­nounced that it had ob­tained debtor-in-pos­ses­sion fi­nanc­ing in the ag­gre­gate prin­ci­pal amount of $450-mil­lion, which is ex­pected to pro­vide the Sears Canada Group with suf­fi­cient liq­uid­ity to main­tain busi­ness op­er­a­tions through­out the CCAA pro­ceed­ings. The debtor-in-pos­ses­sion fi­nanc­ing was ap­proved by the court on a fi­nal ba­sis.

The com­pany has also filed mo­tion ma­te­ri­als re­gard­ing the com­mence­ment of a liq­ui­da­tion process at the Sears

Canada lo­ca­tions that are clos­ing and ex­pects to seek an or­der re­gard­ing the liq­ui­da­tion process on July 18, 2017. Ad­di­tional in­for­ma­tion The Sears Canada Group was granted an ini­tial or­der and pro­tec­tion un­der the CCAA on June 22, 2017. Copies of the com­pany’s mo­tion ma­te­ri­als are avail­able on the mon­i­tor’s web­site. In­for­ma­tion re­gard­ing the CCAA process may also be ob­tained by call­ing the mon­i­tor’s hot­line at 416-649-8113 or 1-855-649-8113 (toll-free) or by e-mail at searscanada@fti­con­sult­ m. Sears Canada will con­tinue to pro­vide up­dates re­gard­ing its re­struc­tur­ing as de­vel­op­ments war­rant. About Sears Canada Inc. Sears Canada is an in­de­pen­dent Cana­dian digital and store-based re­tailer and tech­nol­ogy com­pany whose head of­fice is based in Toronto.

We seek Safe Har­bor.

Shahir Guindi, R Raja Khanna, Car­rie Kirk­man, Deb­o­rah E Rosati, Anand A Sa­muel, Gra­ham Wil­liam Sav­age, Bran­don G Stranzl, Hey­wood Wi­lan­sky

(SCC) Shares: 101,877,662

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