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Reitmans (Canada) Limited Announces the filing of a CCAA Plan of Arrangement and a Binding Commitment Letter for a Credit Facility of up to $115 Million
Reitmans (Canada) Limited Announces the filing of a CCAA Plan of Arrangement and a Bindin...
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[{"type":"text","content":"\n \n \n \n Reitmans (Canada) Limited Announces the filing of a CCAA Plan of Arrangement and a Binding Commitment Letter for a Credit Facility of up to $115 Million\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n \n The Company also announces that it will hold a creditors' meeting on\n \n December 21, 2021\n \n .\n \n \n \n \n The Company filed for creditor protection and obtained an initial order under the CCAA on\n \n May 19, 2020\n \n , which was further amended and restated until\n \n January 28, 2022\n \n .\n \n \n \n \n \n MONTREAL\n \n ,\n \n Nov. 23, 2021\n \n /CNW Telbec/ - Reitmans (\n \n Canada\n \n ) Limited (\"\n \n Reitmans\n \n \" or the \"\n \n Company\n \n \") today announces that it will seek authorization from the Québec Superior Court on\n \n November 26, 2021\n \n , to file its Plan of Arrangement under the\n \n Companies' Creditors Arrangement Act\n \n (the \"\n \n CCAA\n \n \") and to call a creditors' meeting to be held on\n \n December 21, 2021\n \n , by videoconference. The Plan of Arrangement to be submitted to the Company's creditors for approval provides that Reitmans will distribute an aggregate amount of\n \n $95,000,000\n \n (the \"\n \n Settlement Amount\n \n \") to its creditors in full and final settlement of all claims affected by the Plan of Arrangement, including an initial payment of up to\n \n $20,000\n \n per claim plus a pro rata distribution of the remaining balance of the Settlement Amount.\n \n \n The Company further announces that it has entered into a binding commitment letter with BMO Bank of\n \n Montreal\n \n with respect to a senior secured asset-based revolving facility of up to\n \n $115 million\n \n .\n \n \n Under the CCAA, the Plan of Arrangement must be accepted by a simple majority of the creditors of Reitmans whose claims are affected by the Plan of Arrangement and representing at least two-thirds in dollar value of all such claims duly filed in accordance with the CCAA process and who will vote at the meeting, and be approved by the Court.\n \n \n Ernst &...