DAVIDsTEA Obtains Claims Process Order under CCAA

Rhea-AI Summary

DAVIDsTEA (DTEA) announced that the Québec Superior Court issued a Claims Process Order under the Companies’ Creditors Arrangement Act (CCAA). Creditors must submit their claims by 5:00 p.m. ET on November 6, 2020. The court has extended the stay of proceedings against DAVIDsTEA until December 15, 2020. The company will provide updates during the restructuring process. DAVIDsTEA is a leading retailer of specialty tea, offering a variety of products on its e-commerce platform and through retail stores across Canada.

Positive

• Court's Claims Process Order allows for structured creditor claims management.
• Extended stay of proceedings provides temporary relief from immediate financial pressures.

Negative

• The issuance of a Claims Process Order indicates financial distress and potential insolvency risks.
• The requirement for creditors to submit claims suggests significant financial liabilities.

MONTREAL, Sept. 17, 2020 (GLOBE NEWSWIRE) -- DAVIDsTEA Inc. (Nasdaq:DTEA) (“DAVIDsTEA” or the “Company”), a leading tea merchant in North America, announces that the Québec Superior Court today issued a Claims Process Order establishing the claims procedures for the Company’s creditors under the Companies’ Creditors Arrangement Act (“CCAA”). The Order, among other things, sets 5:00 p.m. (eastern time) on November 6, 2020 as the time by which creditors of DAVIDsTEA and of DAVIDsTEA (USA) Inc., its wholly-owned U.S. subsidiary, must submit their claims to PwC, the Court-appointment Monitor. The Court also extended the stay of all proceedings against the Company currently in effect to December 15, 2020.

The Court Order and related documents will be available at www.pwc.com/ca/davidstea.

The Company will continue to provide updates throughout the CCAA restructuring process as events warrant.

About DAVIDsTEA

DAVIDsTEA is a leading branded retailer and growing mass wholesaler of specialty tea, offering a differentiated selection of proprietary loose-leaf teas, pre-packaged teas, tea sachets and tea-related gifts and accessories on our e-commerce platform at www.davidstea.com and through 18 Company-owned and operated retail stores in Canada. A selection of DAVIDsTEA products is also available in more than 2,500 grocery stores and pharmacies across Canada. The Company is headquartered in Montréal, Canada.

Investor Contact	Media Contact
MaisonBrison Communications	PELICAN PR
Pierre Boucher	Lyla Radmanovich
514-731-0000	514-845-8763
investors@davidstea.com	media@rppelican.ca

FAQ

What is the Claims Process Order for DAVIDsTEA (DTEA)?

The Claims Process Order, issued by the Québec Superior Court, establishes claims procedures for DAVIDsTEA's creditors under the Companies’ Creditors Arrangement Act.

When is the deadline for creditors to submit claims for DAVIDsTEA (DTEA)?

Creditors must submit their claims by 5:00 p.m. ET on November 6, 2020.

What is the current status of DAVIDsTEA (DTEA) under the CCAA?

The court has extended the stay of all proceedings against DAVIDsTEA until December 15, 2020.

What is DAVIDsTEA (DTEA) known for?

DAVIDsTEA is a leading retailer and wholesaler of specialty tea, offering a wide range of tea products in Canada.

How can I stay updated on DAVIDsTEA's (DTEA) restructuring process?

DAVIDsTEA will continue to provide updates throughout the CCAA restructuring process as events warrant.