TravelBrands Stay Extended To 29FEB To Deal With Last Minute Claim
TravelBrands request for an extension of stay of creditor protection has been granted by The Ontario Superior Court of Justice. The stay has now been extended to 29FEB16.
This latest extension allows TravelBrands to deal with a last minute claim from Gibralt Capital Corporation, which will be heard by the court 05JAN.
The Gibralt claim relates to a situation involving Thomas Cook Canada, which was later acquired by TravelBrands.
Gibralt Capital Corporation says it paid $3,750,000 to the trustee in bankruptcy in the bankruptcy of Skyservice Airlines Inc. It claims that it is entitled to indemnity by TravelBrands in the amount of $3,964,319.50.
TravelBrands’ court application states that with the Gibralt claim outstanding, the viability of its go-forward plan remains uncertain. Depending on the results of the claim, TravelBrands says it will either proceed with its plan or seek court approval for a sales process or a credit bid from its parent company.