DavidsTea creditors vote to approve CCAA plan of arrangement

By Sarah Lizee

Olympia, Wash., June 11 – DavidsTea Inc. said its plan of arrangement under the Companies’ Creditors Arrangement Act was approved Friday by the requisite majorities of creditors of DavidsTea and of DavidsTea (USA) Inc., its wholly owned U.S. subsidiary.

DavidsTea said it will seek a sanction order for the plan of arrangement from the Quebec Superior Court at a hearing scheduled for June 16.

If the sanction order is granted, DavidsTea and DavidsTea (USA) will seek recognition of the sanction order from the U.S. Bankruptcy Court for the District of Delaware under Chapter 15 at a hearing scheduled for June 17.

The plan of arrangement provides that DavidsTea will distribute about C$18 million to its creditors and those of DavidsTea (USA) in full and final settlement of all claims affected by the plan.

PricewaterhouseCoopers is acting as court-appointed monitor in the CCAA proceedings.

DavidsTea is a tea company based in Montreal. The company filed bankruptcy on July 8, 2020 in the U.S. Bankruptcy Court for the District of Delaware under Chapter 15 case number 20-11802.

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