TravelBrands seeks extension of stay period to Feb. 29, 2016

TravelBrands seeks extension of stay period to Feb. 29, 2016

TORONTO — TravelBrands has filed materials requesting an extension of the stay of proceedings from the Ontario Superior Court of Justice under the Companies’ Creditors Arrangement Act (CCAA) until to Feb. 29, 2016.

The extension of the Stay Period will allow TravelBrands to continue to operate the business as usual as it moves towards exiting from CCAA protection, and provides the time necessary to resolve a disputed claim from Gibralt Capital Corporation, said the company.

A hearing date to determine the validity of the Gibralt Claim has been set by the Court for Jan. 5, 2016, which occurs after the expiration of the current Stay Period.

TravelBrands said it is confident that it will receive a favourable outcome from the Court at the hearing on Jan. 5. TravelBrands would then exit CCAA via its Plan of Compromise or Arrangement, which would see all Affected Creditors paid in full, and which was overwhelmingly approved at a Meeting of Affected Creditors on Oct. 30, 2015.

However, if the disputed Gibralt Claim cannot be adequately resolved, TravelBrands may revisit whether it is necessary to revoke the Plan and seek the Court’s approval of a sale process or credit bid.

The Court-appointed Monitor, KPMG Inc., continues to oversee the business and financial affairs of the Company and supports the extension of the Stay Period. Additional information regarding the Company’s proceedings under the CCAA, including court materials and the Plan, are publicly available on the Monitor’s website at kpmg.com/ca/travelbrands.