Donnelly Group begins CCAA proceedings following pandemic challenges

By Sarah Lizee

Olympia, Wash., May 23 – Donnelly Group has started proceedings under the Companies' Creditors Arrangement Act in order to secure a stronger and more resilient future amidst the unprecedented challenges posed by the Covid-19 pandemic, the company said in a Tuesday afternoon press release.

The company said an initial order has been granted by the Supreme Court of British Columbia.

“The devastating impact of the global pandemic on the hospitality industry followed by its challenging economic effects, has necessitated this strategic move by Donnelly Group,” the company said in the release.

“Recognizing the need to navigate these difficult times and safeguard the well-being of its employees, the company aims to continue working cooperatively with its lender to revise the terms of existing loans, restructure the debt that was required to survive the pandemic, and to emerge as a more robust organization.”

During the restructuring proceedings, Donnelly will collaborate with its lenders and professional advisers, including the court-appointed CCAA monitor, to complete its restructuring plan, streamline operations and communicate with all stakeholders.

The company said it is optimistic that it can complete this process in the next couple of months.

During this period, it expects to continue operating all of its locations without interruption, maintain relationships with suppliers and service providers, and engage its employees at current levels during the CCAA proceeding and afterwards.

Donnelly is a Vancouver, B.C.-based hospitality management company.

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