Reitmans exits restructuring proceedings, enters C$115 million loan

By Sarah Lizee

Olympia, Wash., Jan. 12 – Reitmans (Canada) Ltd. has emerged from its restructuring proceedings under the Companies' Creditors Arrangement Act, according to a press release issued Wednesday.

The company also announced that it has entered into the previously announced three-year senior secured asset-based revolving facility of up to C$115 million with Bank of Montreal.

As a result, the implementation conditions of the plan of arrangement are now all met.

Funds advanced under the credit facility will be used, among other things, to finance the amounts payable under the plan of arrangement and to fund Reitmans' working capital needs and for its ongoing general corporate purposes, including new store openings and renovations.

As previously reported, under the plan, Reitmans is distributing a total amount of C$95 million to its creditors in full and final settlement of all claims affected by the plan of arrangement, including an initial payment of up to C$20,000 per claim plus a pro rata distribution of the remaining balance of the settlement amount.

Ernst & Young Inc. is acting as the monitor appointed under the CCAA process.

Reitmans is a Montreal-based women’s specialty apparel retailer.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.