TravelBrands will request a further extension to the stay of proceedings this week, extending the current deadline from Aug. 17 to Sept. 30.
According to a document filed with KPMG, the court-appointed monitor for the restructuring process, the company intends to file an application for the extension with the Ontario Superior Court of Justice on Friday, Aug. 14. The document states that the extension is being sought to allow "for (a) the continued operation of TravelBrands' business; and (b) an opportunity for TravelBrands and the landlord (of the company’s former headquarters at 75 Eglinton Ave. East in Toronto) to continue their discussions."
In regards to the latter point, discussions concerning a possible settlement have been ongoing between TravelBrands and the landlord, and according to the document, there has been "some progress" made. TravelBrands will either continue its discussions with the landlord in order to facilitate reaching a mutually agreeable settlement or if such discussions are not successful, seek approval of a sales process by the court.
TravelBrands, KPMG and IATA will be meeting in person in late August for the purpose of discussing TravelBrands' restructuring, its continued compliance with IATA's financial requirements and the value and term of the letter of credit.
The document further states that “TravelBrands has continued to be in contact with a number of its critical suppliers and key agents to ensure the continued supply of goods and services. Since the Filing Date, TravelBrands has and continues to pay its key agents prefiling and post-filing amounts in the normal course.” It says that efforts are ongoing "to ensure that there will be no disruption of services to its customers and that business continues as usual."
Additional information regarding the company's CCAA proceedings, including court materials, are publicly available on the Monitor's website, located here.