- Announces settlement with landlord of 75 Eglinton Ave.
- Presents Plan of Compromise that would see Affected Creditors paid in full
- Seeks extension of Stay Period to December 11, 2015
TORONTO, Sept. 21, 2015 /CNW/ - TravelBrands Inc. ("TravelBrands" or the "Company"), a leading Canadian 'super-distribution' network comprised of ten tour operator wholesale and five retail travel brands, today filed documents with the Ontario Superior court of Justice (the "Court") that detail significant progress it has made towards emerging from Companies' Creditors Arrangement Act (CCAA) protection, including the development of a Plan of Compromise that would see affected creditors paid in full.
TravelBrands stable and more competitive with legacy issues addressed
The Company announces that it has decided to enter into a settlement with the landlord of 75 Eglinton, (the "Landlord Settlement"), which will be memorialized in an agreement that is currently being discussed between the relevant parties and will be executed in the near term. The Landlord Settlement will provide for the settlement of claims and potential claims of the Landlord against TravelBrands and certain related parties. Having reached agreements with stakeholders regarding the most pressing legacy issues associated with the Company's CCAA filing, TravelBrands is now better positioned to compete and flourish over the longer term.
TravelBrands also announces that it has developed a Plan of Compromise that would see all Affected Creditors paid in full. Further details will be mailed to Affected Creditors in due course. Affected Creditors can call the following hotline for more information:
1-(855)-222-8084 (toll-free) or (416)-777-8040 (local).
"We have made outstanding progress, that would not have been possible without the constructive efforts of the associated parties," said Frank DeMarinis, President and former Co-CEO, TravelBrands. "We are on a path to emerge from CCAA protection as a stronger, more competitive company. I'm equally pleased that we have reached this point while maintaining the same service levels that our customers have come to expect from us."
"I want to thank our employees and external partners for their unwavering support throughout this process. We are excited to move forward with a strong and reinvigorated TravelBrands led by our new CEO, Zeina Gedeon."
The Company is seeking an extension of the Stay Period up to and including December 11, 2015, which will allow for the continued smooth operation of TraveBrands' business as it moves towards exiting CCAA.
The Court-appointed Monitor, KPMG, continues to oversee the business and financial affairs of the Company and supports the extension of the Stay Period. Additional information regarding the Company's CCAA proceedings, including court materials, are publicly available on the Monitor's website at www.kpmg.com/ca/travelbrands.
About TravelBrands Inc.
TravelBrands operates under several wholesale and retail brands, including, among others: Sunquest, BelAir Travel, Wholesale Travel Group, Last Minute Club, Holiday House, FunSun Vacations, Encore Cruises, Boomerang Tours, ALBATours, Exotik Tours, Intair, Network and Carte Postale.
SOURCE TravelBrands Inc.
For further information: Company: Frank DeMarinis, President and former Co-CEO, TravelBrands Inc., 905-283-6027; Media: English - Joel Shaffer, Longview Communications, 416-649-8006; French - Daniel Larouche, 514-286-4882