This process provides companies with more flexibility in order to honour their obligations to their creditors while benefiting from the protection of the courts., banks, life insurance companies, trust and loan companies.On February 11, 2015, the Court issued an order (the “Sales Process and Stay Extension Order”) approving the Real Property Portfolio Sales Process and extending the Stay Period (as defined in Paragraph 17 of the Initial Order) until and including May 15, 2015.
On June 11, 2015, the Court issued an order (the “Claims Procedure Order”) approving the claims process whereby persons who assert a Claim against the Target Canada Entities must file a Proof of Claim or D&O Proof of Claim with the Monitor on or before p.m. Claims packages and additional information are available using this Please be advised that in accordance with the Order Amending the Claims Procedure Order granted September 21, 2015, the Monitor and the Consultative Committee have agreed to extend the Notice of Objections Bar Date contemplated under the Claims Procedure Order (as amended) to Please be advised that in accordance with the Order Amending the Claims Procedure Order granted October 30, 2015, if the Monitor intends to revise or reject a Claim, the Monitor shall notify the Claimant who has delivered such Proof of Claim or D&O Proof of Claim, as applicable, that such Claim has been revised or rejected and the reasons therefor, by sending a Notice of Revision or Disallowance by no later than On October 30, 2015, the Court issued an order extending the Stay Period (as defined in Paragraph 17 of the Initial Order) until and including December 11, 2015.
was relatively positive when it issued its third-quarter results last November.
In a previous post we discussed how the Court of Queen’s Bench of Alberta recently authorized a sale transaction after being satisfied with the appropriateness of a sales process that was undertaken prior to the issuance of the receivership order.
A pre-filing marketing and investment process may also be used to justify a sale transaction under section 36 of the where the Alberta Court of Queen’s Bench authorized a large and sophisticated oilfield services company to sell substantially all of its assets on the strength of a pre-filing sales process and over the strenuous objection of junior creditors.
If Eddie Lampert is willing to throw in the towel on his equity investment in SRSC, it could indicate that he is not willing to pour more of his cash into propping up SHLD.
In addition, vendors who were already nervous about dealing with Sears may stop shipping goods for the critical Back to School and Fall shopping season.
February 4, 2015On February 4, 2015, the Court issued an order (the “Agency Agreement Order”) approving the Agency Agreement entered into between Target Canada Co., Target Pharmacy Corp., and Target Canada Pharmacy (Ontario) Corp.
and a contractual joint venture composed of Merchant Retail Solutions ULC, Gordon Brothers Canada ULC and GA Retail Canada, ULC, (collectively, the “Agent”) along with Sales Guidelines of the Inventory Liquidation Process.
Less than two months later, the parent company decided to “deconsolidate” with its wholly owned subsidiary and Target Canada filed for protection in Ontario Superior Court under the Companies’ Creditors Arrangement Act.
The decision resulted in the closure of all 133 stores operated by Target Canada and the layoffs of 17,600 employees.
It also sparked questions about the use of what was designed as a restructuring statute by a foreign company to liquidate the operations of its Canadian subsidiary, while the parent company is still a going concern.