Engagements

Clothing for Modern Times Ltd.

Clothing for Modern Times Ltd. (“CMT“) filed a Notice of Intention to Make a Proposal (“NOI“) pursuant to the provisions of the Bankruptcy and Insolvency Act (“BIA“) on Monday, June 27, 2011, and A. Farber & Partners Inc. (“Farber”) was appointed as Proposal Trustee.

Status Updates

The time for CMT to file a proposal expired on December 22, 2011. There were no further extensions of time to file a proposal under the BIA. CMT  determined that a going concern sale of the Costa Blanca business and assets would be in the best interests of all stakeholders; however, CMT would not have sufficient time to conduct a sales process and finalize a sale agreement before December 22, 2011.

Accordingly, on December 16, 2011, the Ontario Superior Court of Justice (Commercial List) granted an order (the “Initial Order“) declaring that effective December 22, 2011, CMT’s restructuring proceeding commenced under the BIA was to be continued under the Companies’ Creditors Arrangement Act and that as of such date, the provisions of the BIA shall have no further application to CMT, save that any and all steps, agreements and procedures validly entered into or taken by CMT during the proposal process shall remain valid and binding notwithstanding the termination of the proposal process under the BIA and commencement within the CCAA proceeding. The Initial Order provided for a stay of proceedings up to and including January 23, 2012, or such later date as this Court may order.

The Initial Order provided that the Monitor, with the assistance of Ernst & Young Orenda Corporate Finance Inc., be approved to immediately conduct a process for the sale of CMT’s business and assets used in connection with the business carried under the retail banner Costa Blanca in accordance with the sales process described in the Initial Order (the “Sales Process“). The Sales Process required that all offers for the Costa Blanca business were to be submitted by the offer bid deadline of January 16, 2011, or such other date as the Monitor may permit.

On January 20, 2012, CMT was granted an Order extending the stay period set out in the Initial Order to February 27, 2012. The extension of the stay period allowed the Monitor to review the offers received for the Costa Blanca business and negotiate and complete an agreement of purchase and sale with a prospective purchaser.

On February 17, 2012, CMT was granted an Order extending the stay period set out in January 20, 2012, Order to March 27, 2012.

On March 27, 2012, CMT was granted an Order extending the stay period set out in the February 17, 2012, Order to May 18, 2012.

CMT failed to file a Plan of Arrangement by the May 18, 2012, deadline. As such, the stay of proceedings provided under the CCAA proceeding was no longer in effect.

On June 6, 2012, Clothing for Modern Times Ltd. filed an assignment into bankruptcy pursuant to the provisions of the Bankruptcy and Insolvency Act (“BIA”) and A. Farber & Partners Inc. was appointed as Trustee in Bankruptcy.

On October 11, 2016, the Trustee obtained its Discharge Order.

Creditor Enquiries

For creditor enquiries, please contact:
Hylton Levy
T: 416.496.3070
E: hlevy@farbergroup.com

The case updates and court filed documents on this website are for information purposes only and you should consult your financial or legal adviser if you have any questions or concerns about your rights or obligations. Additional updates on the status of these proceedings may become available in the future.

Documents

NOI Documents

Bankruptcy Documents

CCAA Documents

Court Reports

Motion Materials

Court Orders