Reitmans exits court protection after 20 months; pays $95 million to creditors
A Reitmans store located in Montreal (CTV Montreal/JL Boulch)
Published Thursday, January 13, 2022 7:00AM EST
Last Updated Thursday, January 13, 2022 7:00AM EST
MONTREAL - Reitmans (Canada) Ltd. says it has paid creditors $95 million as it exits creditor protection after about 20 months.
The Montreal-based company says it has paid court-appointed monitor Ernst & Young Inc. to distribute funds to creditors according to the plan of arrangement.
A list of known creditors as of September 2020, posted online by the monitor, shows Reitmans owed a total of $192,656,167 at that time.
The company says it has also obtained a credit facility for up to $115 million from the Bank of Montreal.
The funds will be used to pay creditors, for working capital and other purposes including new store openings and renovations.
Reitmans filed for creditor protection and obtained an initial order under the Companies' Creditors Arrangement Act in May 2020.