TravelBrands, Ready To Leave Protection After Court Denies Gibralt Claim

Open Jaw

A nearly $4 million claim against TravelBrands has been ruled invalid by an Ontario court and the company is now preparing to emerge from protection under the province’s Companies’ Creditors Arrangement Act (CCAA).

 

“We are pleased that the Ontario Superior Court of Justice has ruled that the claim from Gibralt Captial Corporation is invalid and has upheld TravelBrands’ denial of this claim,” TravelBrands CEO Zeina Gedeon stated.  

 

“TravelBrands continues to move forward to exit CCAA via the Plan of Compromise or Arrangement and has scheduled a Sanction Hearing for Thursday, 14JAN,” Gedeon added.

 

The plan, which would see all affected creditors paid in full, was overwhelmingly approved at a Meeting of Affected Creditors on 30OCT15.

 

Gibralt had claimed it was owed over $3.9 million by Thomas Cook Canada, the former owners of TravelBrands. Gibralt said it had paid most of that amount to the trustee in the bankruptcy of Skyservice Airlines Inc. and filed a last minute claim in the present CCAAB proceedings. Its court argument stated that liability should be transferred to the current owners. 

 

Gedeon says more details regarding TravelBrands’ plans for exiting CCAA and expected timelines will follow in due course. “Until then, it continues to be business as usual for Travelbrands’ valued customers and partners,” Gedeon said.



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