- The Company also announces that it has entered into a
$115 million credit facility
MONTREAL, Jan. 12, 2022 /CNW Telbec/ - Reitmans
(Canada) Limited
("Reitmans" or the "Company") (TSXV: RET) (TSXV:
RET.A) today announces that it has emerged from its restructuring
proceedings pursuant to the Companies' Creditors Arrangement
Act (the "CCAA"). In accordance with the Plan of
Arrangement, Reitmans has paid to the Monitor appointed under the
CCAA process, Ernst & Young Inc., the aggregate amount of
$95 million.
The Company also announces that it has entered into the
previously-announced senior secured asset-based revolving facility
of up to $115 million with Bank of
Montreal (the "Credit
Facility"). As a result, the implementation conditions of the
Plan of Arrangement are now all met. The Credit Facility has a term
of three years. Funds advanced under the Credit Facility will be
used, among other things, to finance the amounts payable under the
Plan of Arrangement and to fund Reitmans' working capital needs
and for its ongoing general corporate purposes, including new
store openings and renovations.
About Reitmans (Canada)
Limited
The Company is a leading women's specialty apparel retailer with
retail outlets throughout Canada.
The Company operates 412 stores consisting of 241 Reitmans, 93
Penningtons and 78 RW&CO. The Company is a publicly traded
company listed on the TSX Venture Exchange (TSX-V: RET,
RET-A). For more information,
visit www.reitmanscanadalimited.com.
Forward-Looking Statements
All of the statements contained herein, other than statements of
fact that are independently verifiable at the date hereof, are
forward-looking statements. Such statements, based as they are on
the current expectations of management, inherently involve numerous
risks and uncertainties, known and unknown, many of which are
beyond the Company's control. Such risks include but are not
limited to: the general economic conditions, general conditions in
the retail industry, seasonality, weather and other risks included
in public filings of the Company, including those described in the
Operating Risk Management and Financial Risk Management sections of
the Company's most recent Management Discussion and Analysis for
the 13 and 39 weeks ended October 30,
2021. Consequently, actual future results may differ
materially from the anticipated results expressed in
forward-looking statements, which reflect the Company's
expectations only as of the date of this press release.
Forward-looking statements are based upon the Company's current
estimates, beliefs and assumptions, which are based on management's
assessment of current and future consumer behavior, including the
impact of the COVID-19 on such behavior, its perception of
historical trends, current conditions and currently expected future
developments, as well as other factors it believes are appropriate
in the circumstances. The reader should not place undue reliance on
any forward-looking statements included herein. These statements
speak only as of the date made and the Company is under no
obligation and disavows any intention to update or revise such
statements as a result of any event, circumstances or otherwise,
except to the extent required under applicable securities law.
www.reitmanscanadalimited.com
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Reitmans (Canada)
Limited