TravelBrands Seeks Protection Extension Through 29FEB
TravelBrands Inc. has
filed materials requesting an extension of the stay of proceedings from the
Ontario Superior court of Justice under theCompanies'
Creditors Arrangement Actuntil
The company says the
extension of the Stay Period will allow it to continue to operate the business
as usual as it moves towards exiting from CCAA protection. The company had
planned a fall exit, but a late claim by Gibralt Capital Corporation stalled
A hearing date to
determine the validity of the Gibralt claim has been set for 05JAN, which
occurs after the expiration of the current Stay Period.
TravelBrands says it is
confident it will receive a favourable outcome from the court at the early
January hearing and would then exit CCAA via its Plan of Compromise or
Arrangement, which would see all affected creditors eventually paid in full.
TravelBrands Plan of Compromisse was approved at a creditor meeting 30OCT.
has reiterated that if the disputed Gibralt claim cannot be adequately
resolved, it may have to revisit whether it is necessary to revoke the plan and
seek court approval of a sale process or credit bid.
Gibralt Capital Corp.
has made travel industry headlines in the past. It purchased 93.5% of charter
carrier Skyservice in 2007. The airline went into receivership in 2010.