Benzinga | Jun 17, 2021 09:24AM EDT

DAVIDsTEA Says Obtains Recognition Order From U.S. Bankruptcy Court For Plan Of Arrangement, Will Fund Court- Appointed Monitor With $18M For Distribution To Creditors

DAVIDsTEA Inc. (NASDAQ:DTEA) ("DAVIDsTEA" or the "Company"), a leading tea merchant in North America, is pleased to announce that it has obtained an order (the "Recognition Order") from the United States Bankruptcy Court for the District of Delaware recognizing a sanction order (the "Sanction Order") issued yesterday by the Qu?bec Superior Court, all in connection with DAVIDsTEA's plan of arrangement (the "Plan of Arrangement") under the Companies' Creditors Arrangement Act ("CCAA"). The Recognition Order was issued under Chapter 15 of the United States Bankruptcy Code.



DAVIDsTEA will now fund PricewaterhouseCoopers ("PwC"), the Court-appointed Monitor in the CCAA proceedings, with approximately CDN $18 million for distribution to the creditors of DAVIDsTEA and of DAVIDsTEA (USA) Inc., its wholly-owned U.S. subsidiary, in full and final settlement of all claims affected by the Plan of Arrangement. The funding of PwC will complete DAVIDsTEA's legal obligations under the Plan of Arrangement.

As previously announced, the Plan of Arrangement was approved on June 11, 2021 by the creditors of DAVIDsTEA and of DAVIDsTEA (USA) Inc., respectively.

PwC is acting as Court-appointed Monitor in the CCAA proceedings. All documents relating to the CCAA proceedings are available at www.pwc.com/ca/davidstea. The Company will continue to provide updates throughout the CCAA restructuring process as events warrant.