DAVIDsTEA Inc. (NASDAQ:DTEA) ("DAVIDsTEA" or the "Company"), a leading tea merchant in North America, announces that it will seek authorization from the Québec Superior Court on Friday, May 7, 2021 to file its Plan of Arrangement under the Companies' Creditors Arrangement Act ("CCAA") and to call a creditors' meeting to be held on June 11, 2021. The Plan of Arrangement to be submitted to the creditors for approval provides that DAVIDsTEA will distribute an aggregate amount of approximately CDN $18 million to its creditors and those of DAVIDsTEA (USA) Inc., the Company's wholly-owned U.S. subsidiary, in full and final settlement of all claims affected by the Plan of Arrangement.
"The Plan of Arrangement results from extensive discussions with our creditors. We thank them for their understanding, co-operation and patience and look forward to completing the CCAA process following the creditors' meeting on June 11," said Herschel Segal, DAVIDsTEA's Chairman and Founder.
Under the CCAA, the Plan of Arrangement must be approved by a simple majority of creditors of DAVIDsTEA and of DAVIDsTEA (USA) Inc., voting separately, whose claims are affected by the Plan of Arrangement, representing in each case at least two-thirds in dollar value of all such claims duly filed in accordance with the CCAA proceedings.
As previously announced, PwC is acting as Court-appointed Monitor in the CCAA proceedings. All documents relating to the CCAA proceedings, including the Plan of Arrangement, will be available at www.pwc.com/ca/davidstea. The Company will continue to provide updates throughout the CCAA restructuring process as events warrant.
DAVIDsTEA can provide no assurance that it will obtain authorization from the Québec Superior Court to file its Plan of Arrangement and call a creditors' meeting, or that the proposed Plan of Arrangement will be accepted by the respective creditors of DAVIDsTEA Inc. and DAVIDsTEA (USA) Inc. on the terms set out therein, or at all.