Hudson’s Bay creditor protection extended until July 31

An Ontario court has extended Hudson’s Bay’s reprieve from the hundreds of businesses it owes money until the end of July.

Judge Peter Osborne granted Canada’s oldest company permission to stretch the period of time it is protected from its creditors to July 31 rather than ending May 15.

Hudson’s Bay lawyer Ashley Taylor argued the extension is necessary to the ongoing process of finding buyers for the business and its assets, as well as takers for its leases.

He also used the court appearance to ask for permission to repay as much as $165 million to Hudson’s Bay’s senior lenders because the department store chain’s liquidation sales have generated money beyond its operating needs.

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Because Osborne approved Taylor’s request, the first of that money, about $46 million, will make its way to Restore Capital LLC around May 23 and $24.6 million will be sent to Bank of America.

Hudson’s Bay filed for creditor protection in March, citing difficulty paying its mounting bills and has been liquidating all of its stores.