Subject: RCN
Reitmans (Canada) Limited Announces that it has Emerged from Restructuring Proceedings
- The Company also announces that it has entered into a $115 million credit facility
MONTREAL, Jan. 12, 2022 /CNW Telbec/ - Reitmans (Canada) Limited ("Reitmans" or the "Company") (TSXV: RET) (TSXV: RET.A) today announces that it has emerged from its restructuring proceedings pursuant to the Companies' Creditors Arrangement Act (the "CCAA"). In accordance with the Plan of Arrangement, Reitmans has paid to the Monitor appointed under the CCAA process, Ernst & Young Inc., the aggregate amount of $95 million.
The Company also announces that it has entered into the previously-announced senior secured asset-based revolving facility of up to $115 million with Bank of Montreal (the "Credit Facility"). As a result, the implementation conditions of the Plan of Arrangement are now all met. The Credit Facility has a term of three years. Funds advanced under the Credit Facility will be used, among other things, to finance the amounts payable under the Plan of Arrangement and to fund Reitmans' working capital needs and for its ongoing general corporate purposes, including new store openings and renovations.
About Reitmans (Canada) Limited
The Company is a leading women's specialty apparel retailer with retail outlets throughout Canada. The Company operates 412 stores consisting of 241 Reitmans, 93 Penningtons and 78 RW&CO. The Company is a publicly traded company listed on the TSX Venture Exchange (TSX-V: RET, RET-A). For more information, visit www.reitmanscanadalimited.com.
Forward-Looking Statements
All of the statements contained herein, other than statements of fact that are independently verifiable at the date hereof, are forward-looking statements. Such statements, based as they are on the current expectations of management, inherently involve numerous risks and uncertainties, known and unknown, many of which are beyond the Company's control. Such risks include but are not limited to: the general economic conditions, general conditions in the retail industry, seasonality, weather and other risks included in public filings of the Company, including those described in the Operating Risk Management and Financial Risk Management sections of the Company's most recent Management Discussion and Analysis for the 13 and 39 weeks ended October 30, 2021. Consequently, actual future results may differ materially from the anticipated results expressed in forward-looking statements, which reflect the Company's expectations only as of the date of this press release. Forward-looking statements are based upon the Company's current estimates, beliefs and assumptions, which are based on management's assessment of current and future consumer behavior, including the impact of the COVID-19 on such behavior, its perception of historical trends, current conditions and currently expected future developments, as well as other factors it believes are appropriate in the circumstances. The reader should not place undue reliance on any forward-looking statements included herein. These statements speak only as of the date made and the Company is under no obligation and disavows any intention to update or revise such statements as a result of any event, circumstances or otherwise, except to the extent required under applicable securities law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Reitmans (Canada) Limited
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