TravelBrands Wins Extension, To Hold Creditor Meeting

Open Jaw

TravelBrands has been granted its requested extension of a stay period through 11DEC15. The Ontario Superior Court of Justice also approved the company’s proposed plan for valuing the claims of affected creditors and to hold a meeting of creditors 30OCT.

At that meeting, creditors will be asked to consider and vote on whether or not to approve TravelBrands’ proposed payout plan.

Under the scenario proposed by TravelBrands, creditors owed less than $15,000 will be paid in full shortly after the Plan Implementation Date and the Landlord of the former Thomas Cook Canada headquarters at 75 Eglinton Ave. East in Toronto and Sears Travel will receive payments in accordance with the terms of their respective settlement agreements.

All other undisputed affected creditors will receive 60% of their respective claims no later than 31JAN16, with the balance to be paid no later than 30NOV16.

 

The plan must be approved by a majority of affected creditors representing at least 2/3 of the value of the voting claims of affected creditors.

 

Last week court-appointed monitor KPMG recommended the plan, stating that it is “more beneficial to the company’s creditors and other stakeholders.” It also stated that compared to a sales process or bankruptcy, the TravelBrands plan would likely offer “a far more favourable recovery” for creditors.

 

KPMG concluded its report by recommending that company creditors vote in favour of the plan, that the court approve the proposed claims procedure and meeting procedure and grant the requested extension of the Stay procedure. The court has now done so.


Some creditors were represented at the court hearing, but none expressed opposition to TravelBrands’ application or the judge’s decisions.

If TravelBrands is successful in validating claims, winning creditor approval for its proposed payouts and taking the company out of court protection, 11DEC could mark a return to normal business.





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