Agnew Shoes Restructuring

On August 18, 2000, Agnew Shoes sought and obtained the approval of the Ontario Superior Court through the Honourable Mr. Justice James Spence, to commence a restructuring proceeding under the Companies’ Creditors Arrangement Act. The debtor carried on business as a mid-market shoe retailer through 233 outlets across Canada under such familiar names as Agnew and Aggies. The proceeding has been proceeding as a liquidation throughout. Mr. Justice Spence approved the appointment of Merchant Resources, Inc., an affiliate of the large US liquidator Hilco Trading Co., Inc. (the “Agent”) as agent of the debtor for the purpose of liquidating its retail merchandise. At a recent Court appearance, the proceedings were extended until October 31, 2000. The debtor and its Court-appointed monitor have reported that it is uncertain as to whether the first secured creditor, National Bank of Canada, will obtain payment in full and whether, consequently, there will be any assets remaining for the other creditors of the company.

Counsel for the debtor are Jules N. Berman, Q.C. and Raymond Slattery of Minden Gross Grafstein & Greenstein LLP. Frederick L. Myers and Steven Golick of Osler, Hoskin & Harcourt LLP are counsel for Richter & Partners Inc., the Court-appointed Monitor. Kenneth D. Kraft of Heenan Blaikie is counsel for the first secured creditor National Bank of Canada. Jeffrey Gollob and Daniel V. Macdonald are counsel for the Agent. Jack Berkow of Berkow, Cohen is counsel for RioCan, a significant landlord, and Robert Arcand of McLean & Kerr LLP appeared as counsel for Cambridge Shopping Centres Limited and other landlords.