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Tabi International Corporation

Tabi International Corporation (“Tabi”) is a New Brunswick-incorporated company that operates a retail clothing store chain with 78 leased locations located in malls in all Canadian provinces, except Quebec.  Tabi’s business consists of the sale of women’s clothing and related accessories.  Tabi also leases its head office at 44 Samor Road, Toronto, Ontario.

Tabi filed a Notice of Intention to Make a Proposal (“NOI”) pursuant to the provisions of the Bankruptcy and Insolvency Act (“BIA”) on Wednesday, February 16, 2011 and A. Farber & Partners Inc. (“Farber”) was appointed as Proposal Trustee. 

This filing was in addition to a previous filing made by Tabi International Corporation in February 2010 (“First Proposal”). 

  • The First Proposal was approved by the creditors at a creditors' meeting held on June 23, 2010 and received Court Approval on August 12, 2011.
  • Farber is in receipt of an amount of $500,000, which has been paid pursuant to the First Proposal to fund payments to the Unsecured Creditor Basket but additional funds due under the First Proposal have not been paid to Farber. Farber was in the process of administering the claims process at the time of the second filing.
  • The ability of Tabi to complete the Proposal is not known at this time.
  • For more details on those earlier proceedings please scroll down below.

The effect of the Notice of Intention to Make a Proposal is that it provides an initial 30-day stay over all creditors for all amounts outstanding effective February 16, 2011 (i.e. all amounts outstanding at February 16, 2010 and prior) whilst the Company formulates a Proposal to be presented to its creditors.

In addition, on Friday, February 18, 2011 an Order was granted by the Ontario Superior Court of Justice appointing Farber as Receiver of the assets, property and undertakings of Tabi, subject to the limited powers as set forth in that Order.

Parties interested in purchasing the assets of Tabi should contact Hylton Levy, CA▪CIRP at 416-496-3070 or hlevy@farberfinancial.com for access to further information, which will be provided to qualified parties who have signed a non-disclosure agreement.

On March 15, 2011, Tabi was granted a 45 day extension to file its proposal pursuant to an Order of the Superior Court of Justice.  Tabi has until May 2, 2011 to file a proposal to its creditors.  In addition to the extension granted, the Ontario Superior Court of Justice granted Tabi approval to enter into an agreement for additional funding in order to fund its ongoing operations and inventory purchases for the spring sales program.

On March 30, 2011, the Receiver brought a Motion on the Commercial List seeking inter alia an Order authorizing  Tabi’s execution of a Liquidation Services Agreement and authorizing and directing Tabi and the Receiver to conduct a retail liquidation sale in accordance with the Sale Guidelines (appended  as Schedule “A” to the Order). A copy of the Motion Record and the Order of Honourable Madam Justice Mesbur dated March 30, 2011 are posted below.

Tabi has commenced a liquidation sale of its inventory at 76 locations across Canada. As a result, the Company is no longer accepting gift cards as payment for inventory purchases.

On May 2, 2011, the Proposal Trustee brought a Motion on the Commercial List seeking an Order, inter alia, authorizing and directing a trustee in bankruptcy to complete the transaction contemplated by the Liquidation Services Agreement approved in the Order of the Honourable Madam Justice Mesbur dated March 30, 2011.  A copy of the Order and Endorsement of the Honourable Justice Cumming dated May 2, 2011 are posted below.

Tabi failed file a proposal to its creditors before 11:59 p.m. (E.S.T.) on May 2, 2011, and, accordingly, pursuant to subsection 50.4(8) of the BIA, the Company was deemed to have made an assignment in bankruptcy. A copy of the Certificate of Assignment and Notice to Creditors is posted below.

If you are in possession of an unredeemed Tabi gift card, you may make a claim as an unsecured creditor by dowloading a copy of the Notice to Creditors package (posted below) and completing and submitting a Proof of Claim.

On August 15, 2011, the Receiver was granted approval by an Oder of the Superior Court of Justice to sell Tabi's intellectual property assets to a third party purchaser (the "Purchaser") pursuant to an agreement of purchase and sale (the "Sale Agreement").  In addition, the Court granted approval to vest in the Purchaser all of Tabi's right, title and interest in and to the intellectual property assets described in the Sale Agreement.  Copies of the Approval and Vesting Order and Endorsement of the Honourable Mr. Justice Morawetz dated August 15, 2011 are posted below.

The purpose of this website is to provide documents to any interested persons regarding the Proposal of this company. The documents listed below are in pdf format and can be viewed and/or downloaded. Please feel free to return to this website periodically for future updates on the status of these proceedings. Additional documents and information will be posted as it becomes available.

Bankruptcy

Proposal

Court Orders

Motion Record

Reports

Sales Process

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First Proposal and related proceedings (commenced February 2010)

The purpose of this website is to provide documents to any interested persons regarding the Proposal and Interim Receivership of the Company. The documents listed below are in .pdf format and be viewed and/or downloaded.

On February 5, 2010 Tabi International Corporation ("Tabi" or the "Company") filed a Notice of Intention to Make a Proposal pursuant to Section 50.4 of the Bankruptcy and Insolvency Act ("BIA"). A. Farber & Partners Inc. ("Farber") was appointed Trustee in the Proposal of the Company.

The effect of the Notice of Intention to Make a Proposal is that it provides an initial 30-day stay over all creditors for all amounts outstanding effective February 5, 2010 (i.e. all amounts outstanding at February 5, 2010 and prior) whilst the Company formulates a Proposal to be presented to its creditors.

On February 25, 2010, by Order of the Honourable Madame Justice Karakatsanis, the deadline to file a proposal was extended by 45 days to April 21, 2010. By that date, the Company is required to either file a Proposal to its creditors or may apply to Court for a further extension of time to implement its restructuring.

Also on February 25, 2010, A. Farber & Partners Inc. was appointed as Interim Receiver (the “Interim Receivership Order”), without security, over all the assets, undertakings and properties of Tabi for the purpose set out in the Interim Receivership Order. The Interim Receivership Order also approved the appointment of Larry Gatien as Chief Operating Officer of Tabi to supervise and oversee Tabi’s operations and assist during the restructuring period. The Interim Receivership Order proclaimed that lease payments are to be made, twice-monthly in equal payments on the first and fifteenth day of each month in advance unless disclaimed in accordance with section 65.2(1) of the BIA. The Interim Receivership Order obliges persons with oral or written agreements with Tabi or statutory or regulatory mandates for the supply of goods and/or services to restrain from discontinuing, altering, or interfering with the supply of such goods or services.

In order to streamline the service of documents, the Court authorized an abridged E-filing Protocol which is detailed in paragraph 40 of the Interim Receivership Order, whereby Tabi, the Receiver, 0714994 B.C. LTD. (“071” or “the Secured Party”) or any party who has filed a Notice of Appearance, may serve Court materials in these proceedings by E-mailing an electronic copy of such materials to E-mail addresses for counsel and other parties as recorded on the Service List, in accordance with the E-filing Protocol of the Commercial List to the extent practicable, or by emailing an HTML link to a specified website to be hosted by either Tabi, the Receiver, or 071 where materials may be posted or downloaded. For this purpose, the Receiver maintains a dedicated section of its website for Tabi on this webpage.

On Friday March 26, 2010, 071, the Secured Party, brought a Motion on the Commercial List to inter alia seeking an Order ratifying Tabi’s execution of a Consulting Agreement and authorizing and directing Tabi and the Consultant to conduct a retail liquidation sale (as defined in the Consulting Agreement) in accordance with the Sale Guidelines (as defined in the Consulting Agreement). A copy of the Motion Record (in two parts) and the Order of Justice Morawetz dated March 26, 2010 are posted below.

On Monday, April 19, 2010, by Order of the Honouable Justice Hoy, the deadline to file a proposal was further extended by 44 days to June 4, 2010. A copy of the Motion Record, Third Report of A. Farber & Partners Inc., the Order of Justice Hoy and the Endorsement of Justice Hoy are posted below.

On Thursday, June 3, 2010, Tabi filed its proposal with the Official Receiver (posted below). Within ten days, Farber sent a creditors' package, including the proposal, a proof of claim form, voting letter and Farber's report advising creditors on the proposal to all creditors on record. Please see the link to the List of Creditors of the Proposal below to confirm you are on the list and your current address. Any additions or changes should be emailed to Christine Antoniou at cantoniou@farberfinancial.com.

A creditors' meeting to vote on the proposal was held at 10:00 a.m. on June 23, 2010 at the Yorkland Hotel, 185 Yorkland Blvd., North York, Ontario. At the meeting, 94% in number and 90% in value of the creditors voted in favour of the proposal. These percentages exceed the required majority in number and two thirds in value required by the BIA. Accordingly, the proposal was accepted by the creditors, but the proposal required Court approval as is prescribed in the BIA.

A notice regarding Court approval was sent to all creditors with proven claims. The application for Court approval of Tabi's proposal was made to the Court at 330 University Avenue, Toronto, Ontario, on the 12th day of August, 2010 at 10:00 a.m. The Court approved the proposal of Tabi at that hearing. Posted below is the Proposal Trustee's report to Court, appendices to the Proposal Trustee's report and the Proposal Trustee's supplementary report. Also posted is the motion record, Court Order approving the proposal and Court endorsement.

Proposals

Orders

Motion Materials

Reports