Court approves TravelBrands’ application for approval of plan and extension of stay period

Court approves TravelBrands’ application for approval of plan and extension of stay period

TORONTO — The Ontario Superior Court of Justice today approved TravelBrands’ plan for valuing the claims of affected creditors and the timetable for holding a meeting of creditors on Oct. 30, 2015 to consider and to vote on whether or not to approve the proposed payout to affected creditors.

The Court also granted an extension of the stay period to Dec. 11, 2015 to allow the company to take the steps necessary to validate claims of affected creditors, to hold the creditors meeting and to proceed with the plan.

Although, some creditors and other stakeholders were represented at the court hearing, there was no objection or opposition to TravelBrands’ application or the judge’s decisions.

The plan proposes that affected creditors owed less than $15,000 will be paid in full upon approval of the plan and that the other affected creditors will be paid in two installments, 60% no later than Jan. 31, 2016 and 40% no later than Nov. 30, 2016.

The monitor estimates that the affected claims will be approximately $33 million of which the Landlord of 75 Eglinton Ave. East will comprise approximately $15 million.

This sets in motion the process of validating claims, getting creditor approval to the proposed payouts, implementing the plan and taking the company out of court protection. Assuming that TravelBrands is successful, it will return to business as usual on or about Dec. 11, 2015.