Sears Canada granted extension of stay period, approval to commence sale process
Sears Canada and certain of its subsidiaries announce that the Sears Canada Group has obtained orders from the Ontario Superior Court of Justice that it was seeking in support of its restructuring efforts under the Companies' Creditors Arrangement Act, including to extend the stay period provided by the Initial Order to October 4, 2017 and to launch a Sale and Investment Solicitation Process to seek out proposals for the acquisition of, or investment in, the Sears Canada Group's business or assets. The SISP deadline for binding offers from parties interested in pursuing a transaction is August 31. The Company reached an agreement with a variety of stakeholders and their counsel to maintain special payments to the defined benefit component of the Sears Registered Retirement Plan, payments in support of post-retirement health and dental benefits, and post-retirement life insurance premiums until September 30, 2017. At that time, the Company expects to have further clarity regarding the potential outcome of its restructuring efforts under the CCAA. The Company previously announced that it had obtained debtor-in-possession financing in the aggregate principal amount of $450M, which is expected to provide the Sears Canada Group with sufficient liquidity to maintain business operations throughout the CCAA proceedings. The DIP Financing was approved by the Court on a final basis. The Company has also filed motion materials regarding the commencement of a Liquidation Process at the Sears Canada locations that are closing and expects to seek an order regarding the Liquidation Process on July 18, 2017.