TORONTO – A group of Sears Canada creditors wants to sue the company’s executive officers and directors, alleging negligent misrepresentation and oppression.
The retailer’s court-appointed monitor says the group wants an Ontario judge’s permission to launch their case against the company, which is currently protected under the Companies’ Creditors Arrangement Act.
In a report prepared ahead of a Friday court hearing in Toronto, the monitor said it has advised the creditor group that it believes such motions should be delayed.
However, it said the creditor group will ask the court to schedule a time to hear their claim.
The court overseeing Sears Canada was also expected to hear a motion to approve the creation of a hardship fund for former employees that will come from a pool of money set aside to pay bonuses for key employees.
The monitor said it supports approval of the fund.