TravelBrands Seeks Protection Extension Through 29FEB

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TravelBrands Inc. has filed materials requesting an extension of the stay of proceedings from the Ontario Superior court of Justice under the Companies' Creditors Arrangement Act until 29FEB16.


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 the process.


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.


However, Travelbrands 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. 

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