TravelBrands Wins Extension, To Hold Creditor Meeting
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
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.
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.