TORONTO, June 2, 2016 /CNW/ - Target Canada Co. (together with its affiliates, "Target Canada") announced today that it has obtained a Sanction Order from the Ontario Superior Court of Justice (Commercial List) approving the Second Amended and Restated Joint Plan of Compromise and Arrangement dated May 19, 2016 in Target Canada's Companies' Creditors Arrangement Act proceedings. The Sanction Order follows the Target Canada creditors' meeting held on May 25, 2016 at the Toronto Board of Trade, at which 1,246 affected creditors representing approximately Cdn$554 million of claims unanimously voted in favour of the Amended Plan.
The Sanction Order authorizes the distribution of funds to Target Canada's creditors pursuant to the Amended Plan. Target Canada expects to begin implementation of the Amended Plan about June 28, 2016, subject to the satisfaction or waiver of all conditions precedent contained in the Amended Plan. Initial distributions to creditors should commence on or about July 6, 2016.
Alvarez & Marsal Canada Inc., the Court-appointed Monitor of Target Canada, estimates an illustrative range of recovery under the Amended Plan for unsecured creditors of approximately 71% to 80%. These estimates are based on information available as at May 6, 2016 and are subject to certain important assumptions and qualifications, including those set out in the Twenty-Seventh Report of the Monitor dated May 11, 2016.
"We are moving quickly to distribute meaningful proceeds to creditors of Target Canada, and appreciate their unanimous approval of our plan", said Aaron Alt of Target Canada.
SOURCE Target Canada
For further information: regarding Target Canada's CCAA proceedings, including the Amended Plan and the Sanction Order, can be found at www.alvarezandmarsal.com/targetcanada. For all inquiries, please contact the Monitor at (844) 864-9548 or [email protected]