Mountain Equipment Co-operative
On September 14, 2020, 1077 Holdings Co-operative (formerly, Mountain Equipment Co-operative) and 1314625 Ontario Limited (collectively, “1077” or the “Petitioners”), were granted an initial order (the “Initial Order”) by the Supreme Court of British Columbia (the “Court”) to commence proceedings (the “CCAA Proceedings”) under the Companies’ Creditors Arrangement Act, R.S.C. 1985, c. C-36, as amended. Pursuant to the Initial Order, Alvarez & Marsal Canada Inc. was appointed as monitor (the “Monitor”) in the CCAA Proceedings.
The Initial Order granted a stay of proceedings (the “Stay Period”) until and including September 24, 2020 and has subsequently been extended to January 20, 2021. During the Stay Period no action, suit or proceedings in any court or tribunal against or in respect of 1077 or the Monitor, or affecting the business or property of 1077, shall be commenced or continued.
On October 2, 2020, the Court granted an amended and restated initial order and sale approval vesting order approving the sale transaction (the “Sale Transaction”) contemplated by the asset purchase and sale agreement between 1077 and 1264686 B.C. Ltd. dated September 11, 2020. On October 30, 2020, the Sale Transaction closed which effectively transferred substantially all of the assets and business operations of 1077 to 1266524 B.C. Ltd. (subsequently renamed 1077 or the “Purchaser”), an assignee of 1264686 B.C. Ltd.
The Monitor was granted enhanced powers for the remainder of the CCAA Proceedings pursuant to the Enhanced Monitor’s Powers Order granted by the Court on November 27, 2020. On December 4, 2020, the Court granted a Claims Process Order approving a claims process for creditors (the “Claims Process”), which commenced on December 11, 2020. Further information regarding the Claims Process is made available here.
The AGM has been postponed pending the outcome of the Claims Process, final settlement of the net working capital proceeds from the Sale Transaction with the Purchaser, and other matters relating the CCAA Proceedings generally. The Monitor will seek advice and directions from the Court on this matter in due course pursuant to the Enhanced Monitor’s Powers Order granted on November 27, 2020, if appropriate.
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