King Street secures relief under CCAA, plans to restructure business

By Sarah Lizee

Olympia, Wash., Nov. 9 – King Street Co. Inc. and some of its affiliates and subsidiaries have obtained relief under the Companies' Creditors Arrangement Act in order to restructure their businesses and financial affairs as a direct result of the Covid-19 crisis, according to a press release issued Monday.

An initial order under the CCAA was granted on Nov. 6 by the Ontario Superior Court of Justice, and MNP Ltd. has been appointed as monitor of the company's CCAA proceedings.

Since provincially ordered restrictions on dining in the greater Toronto area were first implemented in March, all of the company's operating restaurants have been temporarily closed for dine-in service with a limited number of locations offering a scaled-back takeout and delivery service, the group said.

Prior to the second provincially-ordered indoor dining restrictions in October, the company was actively preparing for a gradual reopening of select venues.

“Due to the present financial challenges and to support the company's restructuring and recapitalization, the board of directors of the company determined that it was in the company's best interests to obtain relief under the CCAA,” King Street said in the release.

The company said proceedings under the CCAA will provide the needed breathing room to continue to build on operations and, to the extent permitted by applicable government orders, further the development of plans for re-openings as well as new openings.

King Street is a multi-brand hospitality group based in Toronto.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.