MONTREAL — Reitmans (Canada) Ltd. says its creditors have approved a Plan of Arrangement that will see them receive a distributed $95-million settlement.
The Montreal-based clothing retailer filed for creditor protection and obtained an initial order under the Companies' Creditors Arrangement Act in May 2020.
That order was later amended and restated until Jan. 28, 2022.
Reitmans says under the Plan of Arrangement, it will distribute an aggregate amount of $95 million to its creditors in full and final settlement of all claims, including an initial payment of up to $20,000 per claim.
Reitmans says it will seek the sanction of the Plan of Arrangement on Jan. 4, 2022.
A list of known creditors as of September 2020, posted online by court-appointed monitor Ernst & Young Inc., shows Reitmans owed a total of $192,656,167 at that time.
This report by The Canadian Press was first published Dec. 21, 2021.
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