Sears Canada receives CCAA stay extension to Oct. 4
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 email@example.com 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
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