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Sears Canada Group - Reports

The following reports have been filed in the proceedings:

 Second Report of the Monitor August 16, 2017
The Monitor's Second Report is to inform the court of the following:
a) the activities of the Sears Canada Group and the Monitor since July 12, 2017, the date of the Monitor's First Report;
b) the Liquidation Process;
c) constructive trust claims raised since the commencement of the CCAA Proceedings;
d) pension matters;
e) class action matters;
f) construction lien matters;
g) the receipts and disbursements of the Sears Canada Group for the five-week period ended August 5, 2017;
h) the Employee Representative Counsel's motion to establish a proposed Employee Hardship Fund (as such term is defined below); and
i) the Sears Canada Group's motion requesting the approval and vesting order (the "AVO") contemplated in the asset purchase agreement dated April 12, 2017 (the "Original APA"), as amended by an amending agreement dated July 28, 2017 (the "Amendment", and together with the Original APA, the "APA") between Sears Canada and WCRE Investments Ltd. ("WCRE")[1], a company related to Hungerford Properties Inc., pursuant to which WCRE, will acquire real property owned by Sears Canada and located at the Garden City Shopping Centre in Winnipeg, Manitoba (the "Garden City Property"). The proposed AVO would also approve a distribution of proceeds of the sale to the lenders under the DIP Term Loan Agreement (the "DIP Term Lenders").
 
Supplement to the First Report of the Monitor filed to provide an update on resolution between the Applicants, the DIP Lenders, Representative Counsel, and PBGF regarding the Suspension Orders, the DIP Facility and the provisions of the Initial Order, subject to the approval of the Court.

 Supplement to the First Report of the Monitor
July 13, 2017
 
 First Report of the Monitor July 12, 2017
The Monitor's First Report is to inform the court of the following:
a) the activities of the Sears Canada Group and the Monitor since the issuance of the Initial Order;
b) the receipts and disbursements of the Sears Canada Group for the two-week period ended July 1, 2017;
c) the Sears Canada Group's revised and extended cash flow forecasts for the period July 2, 2017 to October 7, 2017 (the "Revised Cash Flow Forecasts");
d) the Sears Canada Group's motion returnable July 13, 2017 (the "July 13 Motion") seeking:
(i) to suspend Special Payments, Supplemental Plan Payments and PRB Plan Payments;
(ii) to approve the Liquidation Process, the Agency Agreement and the Consultation Agreement;
(iii) to approve the SISP;
(iv) to approve the amendment and restatement of the Initial Order; and
(v) to extend the Stay Period to October 4, 2017.
 
 Pre-Filing Report of the Proposed Monitor (the "Pre-Filing Report") in respect to the Sears Canada Group's application seeking an order, inter alia, a stay of proceedings in respect of the Sears Canada Group June 22, 2017
The Pre-Filing Report includes, inter alia:
a) An overview of the Sears Canada Group's business and affairs, the events leading up to the CCAA proceedings and the Sears Canada Group's restructuring efforts to date;
b) The proposed extension of the Stay of Proceedings to Sears Connect LP and other third parties and the Proposed Monitor's comments thereon;
c) The Sears Canada Group's request for approval of a $300 million debtor-in-possession ("DIP") revolving credit facility (the "DIP ABL Facility") and a DIP term loan facility in an amount equal to the US dollar equivalent of $150 million (the "DIP Term Loan Facility", and together with the DIP ABL Facility, the "DIP Facility")
d) The Sears Canada Group's consolidated cash flow projections to September 16, 2017;
e) The Sears Canada Group's request for approval of the Administration Charge, the DIP Lenders' Charge, the Directors' Charge, the FA Charge and the KERP Charge, and the Proposed Monitor's comments thereon; and
f) A discussion of the Sears Canada Group's intended next steps in the CCAA proceedings.
 

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