• The Company’s creditors have approved the Plan of Arrangement providing for the distribution of an aggregate of $95 million.
• The Company to seek the sanction of the Plan of Arrangement on January 4, 2022.
• The Company filed for creditor protection and obtained an initial order under the CCAA on May 19, 2020, which was further amended and restated until January 28, 2022.
The company announced that the creditors have approved the Plan of Arrangement under the Companies’ Creditors Arrangement Act (the “CCAA”) at a meeting held today by videoconference in accordance with the order granted by the Québec Superior Court (the “Court”) on November 26, 2021. Under the Plan of Arrangement, Reitmans will distribute an aggregate amount of $95 million (the “Settlement Amount”) to its creditors in full and final settlement of all claims affected by the Plan of Arrangement, including an initial payment of up to $20,000 per claim plus, if applicable, a pro-rata distribution of the remaining balance of the Settlement Amount.
It is expected that an application seeking the sanction of the Plan of Arrangement will be filed shortly and will be scheduled to be heard on January 4, 2022, at 9:30 am (Montreal time).
Ernst & Young Inc. is acting as the Monitor appointed under the CCAA process. All documents relating to the CCAA process, including the Plan of Arrangement, are available at www.ey.com/ca/Reitmans. The Company expects to continue to make announcements as further material progress is made.