TravelBrands Obtains Creditor Protection For Restructuring

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TravelBrands, which operates 10 tour operator and wholesaler brands and 5 retail brands including BelAir Travel, Wholesale Travel Group, Last Minute Club, Holiday House, FunSun Vacations, Encore Cruises, Boomerang Tours, ALBATours, Exotik Tours and Intair, has announced it has received protection under the CCAA to allow it to restructure what it calls “certain isolated legacy issues" relating to its acquisition of Thomas Cook Canada in 2013.

Frank DeMarinis, TravelBrands CEO states that the company will carry on “business as usual" during the restructuring saying, “Our customers are not affected by this announcement. Our wholesale and retail brands remain open for business and there will be absolutely no change to the service and support our customers have come to expect from us. As far as our external partners are concerned, it's business as usual."

A statement from TravelBrands stated that... “After acquiring what was then Thomas Cook Canada Inc., the Company made significant effort to address challenges associated with the business – and has been largely successful. There are certain remaining isolated legacy issues that are significantly impacting TravelBrands' financial performance that can only be sufficiently addressed within the confines of CCAA legislation.

Calls to TravelBrands have not been returned at time of publishing this notice, but their statement says that the company has sufficient cash to continue operations as usual under CCAA protection. DeMarinis added, “TravelBrands enters CCAA with the support of its creditors and investors. We will emerge from creditor protection financially stronger, more competitive and well-positioned for the future."

Under the Initial Order, among other things, TravelBrands was granted a stay of proceedings, staying creditor claims against the Company and its subsidiaries during the CCAA process. KPMG has been appointed by the Court as the monitor of the company in the proceedings. The Stay of Proceedings granted under the Initial Order will last for 30 days, although the company may apply for an extension to the Stay in the normal course and at any point during the 30-day period.

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