Payless Canada
CCAA PROCEEDINGSOn February 19, 2019 Payless ShoeSource Canada Inc. ("Payless Inc.") and Payless ShoeSource Canada GP Inc. ("Payless GP" along with Payless Inc., the "Applicants") sought and obtained an initial order (the "Initial Order") from the Ontario Superior Court of Justice (the "Court") under the Companies' Creditors Arrangement Act, R.S.C. 1985, c. C-36, as amended (the "CCAA"). The Initial Order provides, among other things, a stay of proceedings until March 21, 2019 (the "Stay Period") which may be extended by the Court from time to time. The protections and authorizations provided by the Initial Order were also extended to Payless ShoeSource Canada LP (together with the Applicants, the "Payless Canada Entities"). Pursuant to the Initial Order, FTI Consulting Canada Inc. was appointed monitor (the "Monitor") of Payless Canada.
On October 29, 2019, the Honourable Mr. Justice McEwen granted an Order, amongst other things: i) approving and sanctioning the First Amended and Restated Plan of Compromise and Arrangement of the Payless Canada Entities dated October 16, 2019 (the "CCAA Plan"); and ii) extending the Stay Period until February 28, 2020.
On January 16, 2020 (the "Implementation Date"), the Monitor issued the Monitor's Certificate in accordance with the CCAA Plan, indicating that the Implementation Date of the CCAA Plan had occurred and the CCAA Plan, the CCAA Plan Supplement, and the provisions of the Sanction Order which come into effect on the Implementation Date are effective in accordance with their respective terms.
On November 16th, 2020 and pursuant to the CCAA Termination Order dated September 15th, 2020, the CCAA proceedings were terminated upon the filing of the Monitor's Certificate (CCAA Termination). A copy of the CCAA Termination Order and the Monitor's Certificate (CCAA Termination) can be accessed in the Court Orders section of this website.
RECEIVERSHIP
On March 20, 2020, the Receivership Certificate was served in accordance with the Receivership Order dated October 29, 2019. For information regarding the Receivership and the administration of the Wage Earner Protection Program for the benefit of former eligible employees, please select the "Receivership" link located in the menu bar on the left side of this web page.
On April 26, 2021 and pursuant to the Receivership Discharge and Distribution Order dated March 10, 2021, the Receivership proceedings were terminated upon the filing of the Receiver's Discharge Certificate confirming that the Receiver has completed the Remaining Activities (as defined in the First Report of the Receiver) including the distribution of the remaining Receivership Property to Service Canada.
Payless Chapter 11 Proceedings
Coinciding with the commencement of the CCAA proceeding in Canada on February 19, 2019, certain affiliates of the Payless Canada Entities, including Payless Holdings LLC and 26 other related debtors, each filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Missouri (the "U.S. Chapter 11 Proceedings").
All materials filed in the U.S. Proceedings, including the First Day Orders as they are signed and uploaded, are available on the website of the U.S. Debtors' Claims and Noticing Agent, Prime Clerk LLC, at: Prime Clerk
For additional information, please contact the Monitor using the contact information below:
Email: paylesscanada@fticonsulting.com
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