Overview

• At Toronto hearings that continued Friday, landlords argued Liu’s touted $400 million funding pool is not enforceable, largely offshore and insufficient, calling her projections unreliable and the plan “doomed to fail.”
• Hudson’s Bay says the $69.1 million bid for 25 leases is the best remaining option, would generate roughly $50 million for senior creditors and includes a pledge to pay one year of rent upfront and invest $120 million in renovations.
• The court-appointed monitor, Alvarez & Marsal, urged rejection, saying Liu’s plan is not sufficiently developed or realistic and risks near-term insolvency.
• Justice Peter Osborne noted approval could lock landlords into relationships through potential renewals lasting as late as 2094 and is considering whether the assignments meet the CCAA’s reasonableness standard.
• Three leases in Liu-owned B.C. malls have already transferred for $6 million, while opposition to the remaining sites involves major landlords and split lender views, and a decision remains pending after multi-day submissions.