Red Lobster in Ontario court to discuss U.S. bankruptcy case, Canadian assets: docs
BNN Bloomberg
A lawyer for Red Lobster Canada, Inc. says he will ask an Ontario court today to recognize and enforce the chain’s U.S. bankruptcy protection proceedings, a process which documents show could include selling Canadian assets.
Linc Rogers told The Canadian Press in an email that he would make an application to the Ontario Superior Court of Justice on behalf of the beleaguered seafood restaurant chain's Canadian operations Tuesday. He declined to comment further on Red Lobster's future in Canada.
However, a May 20 affidavit filed with the court from the chief executive of Red Lobster Management LLC says the goal of the U.S. proceedings is to orchestrate a sale of most or all of the company’s assets, including those owned by Red Lobster Canada.
"With a looming liquidity crisis and no meaningful ability to raise fresh capital, the RL Group’s board of directors ... determined that a value-maximizing sale would be the best possible alternative," the filing from Jonathan Tibus says.
