SAINT-AUGUSTIN-de-DESMAURES, Québec (BRAIN) — At a hearing Thursday, a majority of the creditors of Louis Garneau Sports and Sugoi Global Inc. accepted a debt restructuring plan proposed by the companies.
The companies filed notices of intention under Canada's Bankruptcy and Insolvency Act in March.
"As the Tour de France taking place right now, those are two crucial stage wins for our teams (Sugoi and Garneau) and that looks very positively for the overall win of the Tour," Louis Garneau, the president and founder of the company, said in a press statement.
Next Thursday, Sept. 17, the restructuring proposal will be presented to the court for final approval. The company said it expected payments to the trustee will be made within 60 days of the approval. "This delay will permit to finalize the financing of the post-proposal operations and the negotiations with the new investors joining the Louis Garneau Group moving forward," the company said.
The company has said a group of investors will help it emerge from insolvency and allow it to remain based in Québec, but it said it will not reveal the identity of the new partners until "all discussions and negotiations are completed."
