Court

TravelBrands gets extension in light of $3.9m Skyservice indemnity claim

TORONTO — The Ontario Superior Court of Justice has ordered that the stay granted to TravelBrands be extended to Feb. 29, 2016. The creditors or other stakeholders who have made an appearance in these court proceedings either consented to or did not oppose the court order.

This extension allows TravelBrands to have its dispute with Gibralt Capital Corporation adjudicated by the Court at a hearing taking place January 5, 2016. Gibralt Capital Corporation paid $3,750,000 to the trustee in bankruptcy in the bankruptcy of Skyservice Airlines Inc. and filed a last minute claim in the present CCAAB proceedings, claiming that it is entitled to indemnity by TravelBrands in the amount of $3,964,319.50.

TravelBrands’ court application stated that with the Gibralt claim outstanding, the viability of the plan remains uncertain and the stay extension is necessary to allow for the resolution of that claim and to allow TravelBrands to either proceed with the plan, seek court approval for a sales process or a credit bid from its parent company.