DavidsTea receives U.S. court recognition of Canadian sanction order

By Sarah Lizee

Olympia, Wash., June 17 – DavidsTea Inc. obtained an order from the U.S. Bankruptcy Court for the District of Delaware recognizing a sanction order issued Wednesday by the Quebec Superior Court, all in connection with the company’s plan of arrangement under the Companies’ Creditors Arrangement Act, according to a press release.

The company said it will now fund PricewaterhouseCoopers, the court-appointed monitor in the CCAA proceedings, with about C$18 million for distribution to the creditors of DavidsTea and of DavidsTea (USA) Inc., its wholly owned U.S. subsidiary, in full and final settlement of all claims affected by the plan of arrangement.

The funding will complete the company’s legal obligations under the plan.

As previously reported, the plan was approved on June 11 by the creditors of DavidsTea and of DavidsTea (USA).

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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