TravelBrands' payment plan approved

TravelBrands’ payment plan for creditors received unanimous approval last week, marking the next steps in the company's ongoing restructuring process.

According to TravelBrands, “99.85 per cent of the value of the claims and 99.87 per cent of the Affected Creditors voted in support of the Plan that would see all Affected Creditors paid in full.”

During the meeting, TravelBrands advised that certain amendments had been made to the plan, “to facilitate the satisfaction of certain conditions to an asset purchase agreement between TravelBrands and its parent company.” The distributions to Affected Creditors that are contemplated by the Plan have not been changed by the amendments, the company said.

TravelBrands also announced that it has sent a Notice of Disallowance to a party that has submitted a significant claim, rejecting the claim in its entirety. The company will work towards a potential resolution of the disputed claim. However, if the issue cannot be resolved in the near term, "TravelBrands may revisit whether it is necessary to revoke the plan and seek the court's approval of a sale process or credit bid," the company stated in a release.

The court-appointed monitor, KPMG Inc., continues to oversee the business and financial affairs of TravelBrands. Additional information regarding the company's proceedings under the Companies' Creditors Arrangement Act, including court materials and the Plan of Compromise or Arrangement, are publicly available at www.kpmg.com/ca/travelbrands.