Sears Legal Battle Continues
CBJ — A court-appointed monitor for the Sears Canada bankruptcy opposes a proposal that would allocate all the former retailer’s remaining assets to the company’s underfunded pensions.
FTI Consulting argues 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 $260 million shortfall in their pension plans.
However, Sears Canada had only about $158.3 million and 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.