In CCAA restructuring proceedings involving a retail apparel company, the monitor sought approval of an asset sale agreement for the debtor’s Costa Blanca business and the debtor sought an extension of the stay of proceedings.
The court considered the criteria under ss. 36(3) and (4) of the Companies’ Creditors Arrangement Act and found the sale process had been conducted fairly and transparently and that the proposed transaction provided the best available consideration to creditors, notwithstanding that the purchaser was related to the debtor.
Approval of the sale was granted subject to a condition requiring the transaction to close by a specified deadline, failing which the debtor and monitor were required to seek further court directions.
The court also granted the debtor’s request to extend the stay of proceedings, approve liquidation of certain store inventory and fixtures, continue a key employee retention plan, and authorize repayment of secured loans.
