June 22, 2017 / 3:04 PM / a year ago

BRIEF-Sears Canada says co, certain units obtains creditor protection under CCAA

June 22 (Reuters) - Sears Canada Inc

* Sears Canada obtains creditor protection under CCAA; will continue executing its reinvention

* Initial order also authorizes Sears Canada Group to obtain debtor-in-possession financing in aggregate principal amount of C$450 million

* ‍DIP financing is expected to provide Sears Canada Group with sufficient liquidity to maintain business operations throughout CCAA proceedings​

* Also announced closing of 20 full-line locations, plus 15 “SEARS HOME” stores, 10 “Sears Outlet” and 14 “Sears Hometown” locations

* Retained BMO Capital Markets, as financial advisor, and Osler, Hoskin & Harcourt LLP, as legal advisor

* Planned reduction in workforce of about 2,900 positions across its retail network and at its corporate head office in Toronto

* Initial order does not apply to Sears Canada pension plan assets

* Shahir Guindi, a director of corporation, has resigned his post

* Hopes to exit CCAA protection “as soon as possible in 2017”

* Iinitial order provides for stay of proceedings in favour of Sears Canada Group for initial period of 30-days

* As a result of CCAA filing, TSX and NASDAQ have suspended trading in common shares of co and TSX has initiated an expedited delisting review Source text for Eikon: Further company coverage:

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