MONCTON, NB, June 25, 2015 /CNW/ - Co-op Atlantic announced today that Co-op Atlantic, Co-op Energy Ltd. and C A Realty Ltd. (collectively, the "Co-op Group") have successfully obtained an order from the Court of Queen's Bench of New Brunswick (the "Court") initiating proceedings under the Companies' Creditors Arrangement Act ("CCAA"). KPMG Inc. has been appointed by the Court as the CCAA monitor (the "Monitor"). While under CCAA protection, the Co-op Group's management remains responsible for the management and operation of the business.
Since the fall of 2014, the Co-op Group has carried out an extensive process of exploring and pursuing a wide range of options and alternatives to address persistent financial challenges faced by the business (the "Sale and Restructuring Process"). As part of the Sale and Restructuring Process, the Co-op Group recently completed a previously announced sale transaction with Sobeys Capital Incorporated ("Sobeys") in which Sobeys acquired the majority of the assets of the Co-Op Group's wholesale and retail food and gas businesses.
The Co-op Group and its advisors continue to engage in active discussions with various stakeholders and interested parties regarding the Co-op Group's remaining agriculture and energy businesses. The purpose of the CCAA proceedings is to provide the Co-op Group with the time and stability needed to continue operating while they pursue opportunities and solutions for the remaining businesses as part of the Sale and Restructuring Process.
The Co-op Group expects to continue operating while it completes the Sale and Restructuring Process. The Co-op Group intends to continue to pay its suppliers for goods and services purchased by the Co-op Group during the CCAA proceedings and to pay employees for services rendered during the CCAA proceedings.
The Co-op Group has the full support of its senior lender, National Bank of Canada. The Co-op Group is working towards a definitive agreement with National Bank to provide additional financing during the CCAA Proceedings. Prior to reaching a definitive agreement, National Bank has agreed to continue providing the Co-op Group with financing under its existing operating line.
"The initiation of CCAA proceedings will provide the Co-op Group with the time and stability we need to continue the process of finding solutions to our financial challenges," said Bryan Inglis, Chief Executive Officer of Co-op Atlantic. "It will allow us to preserve value and continue operating the business while we work to achieve an outcome that is in the best interests of the Co-op Group and its stakeholders."
For further information, including information and materials relating to the CCAA Proceedings, please refer to the Monitor's website at the following web address: http://www.kpmg.com/ca/coopatlantic.
Co-op is a co-operative entity headquartered in Moncton, New Brunswick that operates energy and agriculture businesses in Atlantic Canada. For further details on Co-op, please refer to Co-op's website (www.coopatlantic.ca).
SOURCE Co-op Atlantic
For further information: Mike Randall, Communications Co-op Atlantic, Telephone (506) 878 3025, Web: www.coopatlantic.ca