{"id":59665,"date":"2025-05-13T19:26:45","date_gmt":"2025-05-13T19:26:45","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2025\/05\/13\/hudson-bay-gets-court-approval-to-extend-creditor-protection-to-july-31\/"},"modified":"2025-05-13T19:26:45","modified_gmt":"2025-05-13T19:26:45","slug":"hudson-bay-gets-court-approval-to-extend-creditor-protection-to-july-31","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2025\/05\/13\/hudson-bay-gets-court-approval-to-extend-creditor-protection-to-july-31\/","title":{"rendered":"Hudson Bay gets court approval to extend creditor protection to July 31"},"content":{"rendered":"
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An Ontario court has extended an order that protects <\/p>\n

Hudson\u2019s Bay Co. ULC<\/p>\n

from its creditors until July 31, giving Canada\u2019s oldest department store more time to pay back what it owes. <\/p>\n

\u201cThe extension to the end of July is appropriate and will certainly be necessary given the steps that remain,\u201d said Judge Peter Osborne, who has been hearing the case at the Ontario Superior Court of Justice in Toronto since March 7. <\/p>\n

The 355-year-old company first went to court on March 7 to seek protection under the Companies\u2019 Creditors Arrangement Act (CCAA). The application was granted by the court that same day, and the stay order was eventually extended till May 15. <\/p>\n

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. <\/p>\n

HBC received bids from 17 parties for either the company\u2019s IP, such as its brand name, or its leases. The company hasn\u2019t said who made the bids, but they are currently being reviewed. Deals have to seek court approval by May 30, according to court documents. <\/p>\n

The extension of the stay period \u201cis necessary and appropriate\u201d to provide (HBC) \u201cthe ability to complete the liquidation process, lease monetization process and SISP process, to maximize value for the benefit of the applicants and their stakeholders,\u201d a court document filed by HBC\u2019s lawyers on May 7 said. <\/p>\n

Urbana Corp., a Toronto-based investment firm with about $500-million worth of assets, in April said it had placed a bid to <\/p>\n

purchase HBC\u2019s brand name and the Royal Charter<\/p>\n

, a historical document that gave the company exclusive trading rights over a portion of Canada in 1670. <\/p>\n

Media reports also suggested <\/p>\n

Canadian Tire Corp. Ltd.<\/p>\n

and a Vancouver-based billionaire are potential bidders. <\/p>\n

The court also approved HBC\u2019s request to pay back about $165 million to some of its senior lenders. <\/p>\n

\u201cI think that those distributions should be made,\u201d Osborne said. \u201cThey\u2019re clearly, obviously sought by those lenders and, in my view, they\u2019re 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.\u201d <\/p>\n

HBC\u2019s lawyer, Ashley Taylor, said he expects the company to return to court in about two weeks\u2019 time for the approval of \u201cone or more transactions.\u201d <\/p>\n

The company\u2019s 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. <\/p>\n