TORONTO — The creditors of TravelBrands approved last week its plan for settling creditor claims and emerging from creditor protection.

Some 652 creditors representing over $28 million in claims voted to accept the plan while one creditor representing less than 1% of the claimants voting opposed the plan. Accordingly, both thresholds established under the Companies’ Creditors Arrangement Act were surpassed.

At the commencement of the meeting, creditors present were presented an Amended and Restated Plan of Compromise or Arrangement. KPMG Inc. (the Monitor), which chaired the meeting, indicated that the amendment was made to facilitate the inclusion of the Asset Purchase Agreement previously contemplated as a possible alternative and the condition contained in this agreement requiring TravelBrands to obtain approval of the Court to several matters referred to in the Asset Purchase Agreement.

The distributions to Affected Creditors contemplated by the plan have not been changed by the amendments.

The Monitor also advised the meeting that a significant but disputed claim was recently filed and that the claim couldn’t be resolved prior to the meeting. He further advised that the claim related to a claim against a related company made in respect to a period which preceded the time at which the present management of TravelBrands took over the company.

Legal counsel for the claimant advised that the claimant was Gibraltar Realty but refused to disclose the amount of the claim.

In response to questions, the Monitor advised that they hoped to settle this claim as quickly as possible. It was left unclear as to what would happen if the claim could not be resolved.

The company however warned that “if the issue cannot be resolved in the near term TravelBrands may revisit whether it is necessary to revoke the plan and seek the Court’s approval of a sale process or credit bid”.

Again in response to questions the Monitor advised that immediate payment of creditor claims under $15,000 was contemplated in the Amended Plan.

It seems that this new disputed claim has created some uncertainty as to how this matter will proceed. Presumably, the Monitor will advise the court and the creditors as appropriate.