Page last updated: September 15, 2020
This page is for information purposes only and you should consult your professional adviser if you have any questions or are uncertain as to your rights or obligations.
At the hearing on September 10, 2020, the Court granted Kahunaverse Sports Group Inc. (“KSG”) and Soccer Express Trading Corp, together the “Companies”, application requests, and a copy of the Orders can be found under the Court Orders tab. The Stay of Proceedings has also been extended to October 30, 2020.
The Court authorized the Companies to file a Plan of Compromise and Arrangement (the “Plan”), and to hold a virtual Creditors Meeting to vote on the Plan on October 6, 2020. An email containing all Meeting Materials is being emailed to all creditors on or before September 15, 2020.
A copy of the Meeting Materials has been posted to this website, under the Creditors Meeting tab:
The Monitor has issued its Third Report to Court which provides details of the Plan and the Monitor’s view of the Plan. The Monitor recommends that Creditors vote FOR the Plan. A summary of the Plan follows:
The face value of the promissory note will be the Eligible Creditor’s pro-rata share of the $2 million, after deductions for payments on Employee Priority Claims, Convenience Claims, Cash Election Claims, and the reserve for claims that remain in dispute. Greyrock Capital Inc. will guarantee the payment of the promissory notes. The Monitor estimates that Unsecured Creditors holding Eligible Creditor Claims will receive a promissory note valued between 12 – 13% of their Eligible Claim amount.
The promissory notes will be paid by KSG over a 2 year period, in quarterly instalments, starting with the first payment being made at the time the note is issued. The notes carry an option that KSG may pay the note in full within 6 months of the Plan Implementation Date, wherein the note will be reduced by 8% of the face value of the note.
To approve the Plan, a majority in number of creditors voting, and 2/3 in value of claims voting, must vote in favour of approving the Plan. The deadline for a creditor with an Eligible Creditor Claim to submit their Proxy is October 5, 2020 5:00 pm Vancouver time, or, at the Creditors Meeting.
Should Unsecured Creditors approve the Plan at the Creditors Meeting, the Companies intend to seek the Court's approval of the Plan on October 13, 2020.
Further updates will be posted to this website as the restructuring process continues.
Kahunaverse Sports Group Inc. and Soccer Express Trading Corp are making an application to Court on September 10, 2020, to seek Court approval:
Additionally, the Monitor is making an application to have the Court approve the activities and accounts of the Monitor.
Copies of application materials and the Monitor’s Third Report to Court will be posted to the Motion Materials tab and the Monitor’s Reports tab respectively, as soon as they become available.
Should the Court approve the above items, the Monitor will be in touch with all creditors who filed a claim in the CCAA Proceedings, by September 15, 2020 at the latest. Correspondence will be through the email address as noted on your Proof of Claim form.
Further updates on the Plan and the Creditor Meeting process will be posted to this website as soon as they become available.
Yesterday the Court granted the Companies’ application for an extension to the stay of proceedings. A copy of the Court order granting the stay extension to September 11, 2020 can be found under the Court Orders tab above.
A court hearing is scheduled for Tuesday, July 23, 2020.
Kahunaverse Sports Group Inc (“KSG”) and Soccer Express Trading Corp (“SX”), together the “Companies”, have made significant progress in its restructuring activities, in light of the challenges generated by the COVID-19 pandemic and have advanced discussions with numerous significant vendors, including adidas, to secure ongoing supply arrangements. Presently, the Companies are seeking more time to file a plan(s) of compromise and arrangement (a “Plan”) as further discussions with vendors are required. The Companies are seeking approval to extend the stay of proceedings to September 11, 2020.
Copies of the application materials can be found under the Motion Materials tab. The Monitor’s Second Report to Court, which speaks to the stay extension approval that the Companies are seeking from the Court, can be found under the Monitor’s Reports tab. A summary of the hearing and any order made by the Court will be posted to this website shortly after the hearing.
Justice Fitzpatrick released oral reasons in respect of the hearing held on May 8, 2020. A copy of her written reasons, as well the two orders as described below, will be posted to this website as soon as they are available. As a result of today’s attendance in court:
An Amended and Restated Initial Order (“ARIO”) was granted, highlights which include:
A Claims Process Order (“CPO”) was granted, highlights which include:
As a result of today’s court hearing:
The Monitor will post another status update on May 12, 2020 after the results of today’s hearing are known.
Effective April 30, 2020, the Notice of Intention (“NOI”) proceedings taken under the Bankruptcy and Insolvency Act ( the “BIA”), were transferred to the Companies’ Creditors Arrangement Act (the “CCAA”).
The transition from the BIA to the CCAA is seamless for creditors and does not require any action at this time.
Key outcomes of today’s hearing are as follows:
Copies of all documents, including those filed under the NOI and now the CCAA proceedings are posted to this website. The Monitor will continue to use this website throughout these proceedings, and as such, creditors and any other stakeholders are advised to check this website from time to time for the latest information.
Kahunaverse and Soccer Express are both working on their Plans to address the pre-filing debts, and once a Plan has been filed, it will be sent to creditors.
This Web site will be updated as information becomes available.
For more information, please contact: Kiran Chahal, Telephone: +1 604 806 7787, or via Email.
Senior Associate, PwC Canada
Tel: +1 604 806 7787