Cinram International Inc., Cinram International Income Fund, and the Applicants
On June 25, 2012, C International Inc., formerly Cinram International Inc., C International Income Fund, formerly Cinram International Income Fund, CII Trust and the companies listed in Schedule “A” to the Initial Order (collectively the "Applicants") obtained an Initial Order (the “Initial Order”) under the Companies’ Creditors Arrangement Act (the “CCAA”). The Applicants were granted a stay of proceedings and other relief provided under the CCAA, which was extended to C International Limited Partnership, formerly Cinram International Limited Partnership (“Cinram LP”, and together with the Applicants, the “CCAA Parties”). Pursuant to the Initial Order, FTI Consulting Canada Inc. (“FTI” or the “Monitor”) was been appointed Monitor.
Following entry of the Initial Order of the Canadian Court in the CCAA Proceeding, certain of the Applicants filed voluntary petitions under chapter 15 of title 11 of the United States Code, as amended (“Chapter 15”) in the United States Bankruptcy Court for the District of Delaware (the “U.S. Court”) seeking, among other things, recognition of the CCAA Proceeding as the “foreign main proceeding” for the reorganization of the Debtors’ estates. The Canadian Court named CRW International ULC, formerly Cinram International ULC, as the foreign representative of the Debtors for purposes of commencing and administering the Chapter 15 proceedings.
On October 19, 2012, FTI Consulting Canada Inc. was appointed as receiver (the "Receiver") pursuant to an Order of the Ontario Superior Court of Justice over the Limited Receivership Property of Cinram International Inc. ("CII") in relation to business being carried on by CII. Please refer to the 'CII Limited Receivership' section located in the menu to the left for further information.
On August 31, 2012, the Applicants closed the sale of their North American assets and business to Cinram Group Inc. (the “Purchaser”). On February 5, 2013, the C International Inc. and 13628066 Ontario Limited (the “Share Sellers”) completed the sale of their European business to the Purchaser.
Since the sale of the North American assets and business and the European business, the Monitor, in coordination with the advisors to the Pre-Petition First Lien Lenders have been seeking buyers for the Excluded Assets (as defined in the Asset Purchase Agreement dated June 22, 2012) of the North American business. Based on the amount of proceeds from the sale of the North American and European businesses and the priority of the Pre-Petition First Lien Lenders, there will be no claims procedure calling for claims against the CCAA Parties.
On December 2, 2015, the Court issued an order terminating the CCAA Proceedings and discharging the Monitor upon the Monitor filing a certificate (the “Monitor’s Certificate”) certifying that all matters required to terminate the CCAA Proceedings have been completed (the “Termination and Discharge Order”). The Termination and Discharge Order also provides for the extension of the Stay of Proceedings until the earlier of (i) the filing of the Monitor’s Certificate with the Court, or (ii) 11:59 p.m. on February 26, 2016.
There remain certain limited administrative matters to be completed by the CCAA Parties and the Monitor to complete the CCAA Proceeding, closing bank accounts, settling outstanding invoices for professional and other fees, assisting with closing the US Proceedings and ultimately making a further and final distribution to the Pre-Petition First Lien Agent on behalf of the Pre-Petition First Lien Lenders (the “Final Distribution”).
On September 2, 2015, the Ontario Superior Court of Justice approved an order extending the Stay of Proceedings until December 4, 2015.
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