DavidsTea to seek court approval to file plan of arrangement Friday

By Sarah Lizee

Olympia, Wash., May 4 – DavidsTea Inc. said it will seek authorization from the Quebec Superior Court on Friday to file its plan of arrangement under the Companies’ Creditors Arrangement Act and to call a creditors’ meeting to be held on June 11.

The plan of arrangement to be submitted to the creditors for approval provides that DavidsTea will distribute about C$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, according to a press release.

The plan must be approved by a simple majority of creditors of DavidsTea and of DavidsTea (USA), voting separately, whose claims are affected by the plan, representing in each case at least two-thirds in dollar value of all claims.

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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