TravelBrands Seeking Extension Of Stay To Continue Negotiations

Open Jaw

Documents filed with the court-appointed monitor reveal that TravelBrands will request a further extension to the stay of proceedings, extending the current deadline from 17AUG to 30SEP.

According to a KPMG document, the company will file an application for the extension with the Ontario Superior Court of Justice on Friday. The document says TravelBrands is seeking the extension to allow for the continued operation of its business and to give it an opportunity to continue negotiations with the landlord of the company’s former YTO headquarters.

The company says “some progress” has been made in those talks. It says it will either continue its discussions with the landlord in order to facilitate a mutually agreeable settlement or, if such discussions are not successful, TravelBrands could seek approval for a sales process of TravelBrands assets.

TravelBrands also has advised that it is considering restructuring the business as a compromise which could also provide benefits to the company’s taxation.

On another front, TravelBrands, KPMG and IATA will meet later this month to discuss the company’s restructuring and its continued compliance with IATA's financial requirements. The document filed with KPMG says TravelBrands “has continued to be in contact with a number of its critical suppliers and key agents to ensure the continued supply of goods and services.”

The company says it has and will continue to pay its key agents and that efforts are ongoing "to ensure that there will be no disruption of services to its customers and that business continues as usual."

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