Sears Canada Inc., October 25, 2018
October 25, 2018
Status of motions for pension priority based on PBA deemed trust and lien and charge
Recently, our firm as Representative Counsel, along with Morneau Shepell and the Superintendent of Financial Services, have been in negotiations with the Monitor with respect to settling the motion we filed on behalf of the Sears Pension Plan members, and the Joint FSCO/Morneau motions for a priority payment to the Sears Pension Plan with respect to the wind-up deficit owing by Sears to the pension plan based on the Ontario Pension Benefits Act deemed trust and lien and charge priority provisions.
Last week, we, along with Morneau and FSCO, entered into an agreement with the Monitor to settle the pension plan deemed trust and lien and charge motions. This agreement is subject to certain conditions. While these conditions are being worked on, we have agreed to adjourn the motions that were scheduled for November 1 and 2, 2018. On October 22, 2018, we attended before the CCAA Judge who granted the adjournment. To view the Endorsement, please click here.
We will keep you apprised of developments with respect to the settlement.