The Supreme Court of British Columbia has extended creditor protection for Sterling Shoes Inc. (TSX: SSI) and Sterling Shoes Limited Partnership until December 30, the company announced this morning.
“The [court] order extends the stay period until December 30, 2011, to be further extended as required and approved by the court,” the company statement reads. “During this period, all proceedings on the part of the company’s creditors continue to be stayed.”
Last month, Sterling announced that it would restructure under court creditor protection for an initial period expiring November 20. A few days later, the Toronto Stock Exchange announced that it would de-list the public company for failure to meet listing requirements. See “TSX to de-list Sterling Shoes” – BIV Business Today, October 27.
In its petition for creditor protection, Sterling explained that an aggressive expansion plan between 2005 and 2008 “collided with the financial crisis,” resulting in debts of $57 million as of September 20.
Alvarez & Marsal Canada Inc. has been appointed monitor pursuant to the first order for creditor protection.
Jenny Wagler
@JennyWagler_BIV