DAVIDsTEA Inc. (NASDAQ:DTEA) (“DAVIDsTEA” or the “Company”), a leading tea merchant in North America, is pleased to announce that it today obtained a sanction order (the “Sanction Order”) from the Québec Superior Court for its plan of arrangement (the “Plan of Arrangement”) under the Companies’ Creditors Arrangement Act (“CCAA”). As previously announced, DAVIDsTEA and DAVIDsTEA (USA) Inc., its wholly-owned U.S. subsidiary, will seek recognition of the Sanction Order from the United States Bankruptcy Court for the District of Delaware under Chapter 15 of the United States Bankruptcy Code at a hearing scheduled for tomorrow, June 17, 2021.
As previously announced, the Plan of Arrangement was approved on June 11, 2021 by the creditors of DAVIDsTEA and of DAVIDsTEA (USA) Inc., respectively, and provides that DAVIDsTEA will distribute an aggregate amount of approximately CDN $18 million to its creditors and those of DAVIDsTEA (USA) Inc. in full and final settlement of all claims affected by the Plan of Arrangement.
PricewaterhouseCoopers is acting as Court-appointed Monitor in the CCAA proceedings. All documents relating to the CCAA proceedings are available at www.pwc.com/ca/davidstea. The Company will continue to provide updates throughout the CCAA restructuring process as events warrant.
DAVIDsTEA can provide no assurance that the sanction order for the Plan of Arrangement from the Québec Superior Court will be recognized by the United States Bankruptcy Court for the District of Delaware.