Newspaper article The Canadian Press

Sears Canada's Court Monitor Opposes Priority for Pensioners over Other Creditors

Newspaper article The Canadian Press

Sears Canada's Court Monitor Opposes Priority for Pensioners over Other Creditors

Article excerpt

Monitor opposes proposal for Sears pensions

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TORONTO - A court-appointed monitor for the Sears Canada bankruptcy process says it opposes a proposal that would effectively allocate all the failed retailer's remaining assets to the company's underfunded pensions.

FTI Consulting argues in a Sept. 7 filing to Ontario Superior Court that the pension proposal should be dismissed due to legislation and case law.

A petition filed with the court in July by the pensioners claimed about 18,000 Sears retirees should have first claim on assets to reduce a roughly $260 million shortfall in their pension plans.

However, Sears Canada had only about $158.3 million on hand plus a few properties that remain to be sold -- meaning none of the company's other unsecured creditors would receive anything if the pensioners get first priority. …

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