Brief: Sears Canada says co, certain units obtains creditor protection under CCAA

Sears Canada

22/06/2017 15:24

June 22 (Reuters) - Sears Canada Inc  SCC.TO  
    * Sears Canada obtains creditor protection under CCAA; will 
continue executing its reinvention 
    * Initial order also authorizes Sears Canada Group to obtain 
debtor-in-possession financing in aggregate principal amount of 
C$450 million 
    * DIP financing is expected to provide Sears Canada Group 
with sufficient liquidity to maintain business operations 
throughout CCAA proceedings 
    * Also announced closing of 20 full-line locations, plus 15 
"SEARS HOME" stores, 10 "Sears Outlet" and 14 "Sears Hometown" 
locations 
    * Retained BMO Capital Markets, as financial advisor, and 
Osler, Hoskin & Harcourt LLP, as legal advisor 
    * Planned reduction in workforce of about 2,900 positions 
across its retail network and at its corporate head office in 
Toronto 
    * Initial order does not apply to Sears Canada pension plan 
assets 
    * Shahir Guindi, a director of corporation, has resigned his 
post 
    * Hopes to exit CCAA protection "as soon as possible in 
2017" 
    * Iinitial order provides for stay of proceedings in favour 
of Sears Canada Group for initial period of 30-days 
    * As a result of CCAA filing, TSX and NASDAQ have suspended 
trading in common shares of co and TSX has initiated an 
expedited delisting review 
 
Source text for Eikon:  urn:newsml:reuters.com:*:nCNWsfZRRa 
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