https://www.youtube.com/watch?v=YmCS66xSihc
An Ontario court has extended an order that protects
Hudson’s Bay Co. ULC
from its creditors until July 31, giving Canada’s oldest department store more time to pay back what it owes.
“The extension to the end of July is appropriate and will certainly be necessary given the steps that remain,” said Judge Peter Osborne, who has been hearing the case at the Ontario Superior Court of Justice in Toronto since March 7.
The 355-year-old company first went to court on March 7 to seek protection under the Companies’ Creditors Arrangement Act (CCAA). The application was granted by the court that same day, and the stay order was eventually extended till May 15.
HBC has been trying to raise money by liquidating its stores, auctioning its artifacts, monetizing its leases and selling its intellectual property (IP) to pay back about $1 billion to its creditors since March. The deadline to bid for the company and its IP ended April 30, and bids for leases had to be made by May 1.
HBC received bids from 17 parties for either the company’s IP, such as its brand name, or its leases. The company hasn’t said who made the bids, but they are currently being reviewed. Deals have to seek court approval by May 30, according to court documents.
The extension of the stay period “is necessary and appropriate” to provide (HBC) “the ability to complete the liquidation process, lease monetization process and SISP process, to maximize value for the benefit of the applicants and their stakeholders,” a court document filed by HBC’s lawyers on May 7 said.
Urbana Corp., a Toronto-based investment firm with about $500-million worth of assets, in April said it had placed a bid to
purchase HBC’s brand name and the Royal Charter
, a historical document that gave the company exclusive trading rights over a portion of Canada in 1670.
Media reports also suggested
Canadian Tire Corp. Ltd.
and a Vancouver-based billionaire are potential bidders.
The court also approved HBC’s request to pay back about $165 million to some of its senior lenders.
“I think that those distributions should be made,” Osborne said. “They’re clearly, obviously sought by those lenders and, in my view, they’re beneficial to the estate as well, given the interest that continues to accrue on these not insignificant amounts and that will be reduced by these paydowns.”
HBC’s lawyer, Ashley Taylor, said he expects the company to return to court in about two weeks’ time for the approval of “one or more transactions.”
The company’s representatives are having discussions with various parties, including government officials, about the art collection it is trying to sell. Some groups have expressed concerns about the auction since HBC possesses artifacts that represent important milestones in Canadian history, including the Royal Charter.
Taylor said a large number of parties were given access to the list of artifacts in order to “see and inspect” them.
He also said many of the artifacts had already been donated to the Museum of Manitoba, “particularly the more cultural, the significant and sensitive artifacts.”
• Email: nkarim@postmedia.com
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Hudson Bay gets court approval to extend creditor protection to July 31
2025-05-13 19:26:45
