Red Lobster Canada Seeks Ontario Court's Help to Enforce US Bankruptcy Filing

 

Red Lobster Canada Seeks Ontario Court's Help to Enforce US Bankruptcy Filing

Red Lobster Canada, the Canadian arm of the popular seafood chain, is seeking the assistance of the Ontario Court to enforce a US bankruptcy filing that has been challenged by its creditors. The move is a bid to protect the company's assets and ensure that its Canadian operations are not affected by the ongoing legal disputes.

In November, Red Lobster's parent company, Golden Lake Capital Group, filed for bankruptcy in the United States, citing financial difficulties and a decline in sales. The filing allowed the company to restructure its debt and avoid liquidation. However, some of Red Lobster's Canadian creditors have challenged the filing, claiming that it was not properly served and that they have not received adequate notice.

To address these concerns, Red Lobster Canada is seeking an Ontario court's approval to enforce the US bankruptcy filing. The company is arguing that the filing is valid and that it should be recognized by Canadian courts. If successful, the move would allow Red Lobster Canada to continue operating its restaurants in Canada while avoiding potential liabilities and lawsuits from its creditors.

The case has significant implications for Red Lobster's Canadian operations, which employ over 1,000 people and generate significant revenue. If the company is unable to enforce the US bankruptcy filing, it may be forced to liquidate its assets and close its Canadian restaurants.

What Can You Do?

• Stay informed: Stay informed about the developments in Red Lobster Canada's bankruptcy filing and its potential impact on the company's operations.
• Support small businesses: Support local small businesses and restaurants that may be affected by Red Lobster's financial struggles.
• Advocate for transparency: Advocate for transparency and fairness in corporate bankruptcies and restructurings.

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