$611 million in Sears Canada dividend payments under review by court monitor
Company pension was 19 per cent short of meeting its commitments at 2015's end
01/17/2018|payroll-reporter.com|Last Updated: 01/24/2018
Shoppers leave a Sears store on the first day of liquidation sales in Mississauga, Ont., Oct. 19, 2017. REUTERS/Chris Helgren
TORONTO (CP) — The court appointed monitor for Sears Canada's insolvency says it is reviewing millions of dollars the company paid in dividends while its pension fund fell short.
FTI Consulting Canada filed a report Monday with the Ontario Superior Court of Justice that says it will review some transactions, payments and dividends entered into, made or declared by the company before they filed for protection under the Companies' Creditors Arrangement Act.
The monitor identifies a $102 million dividend payment on Dec. 31, 2012 and a $509 million dividend payment on Dec. 6, 2013 as two transactions of interest.
When the department store chain sought approval to liquidate in 2017, it was grappling with a more than $260 million shortfall in its pension plan.
A Sears Canada Retiree Association website says the pension was 19 per cent short of what it needed to meet its commitments as of Dec. 31, 2015.
The retail chain's last remaining stores closed their doors for the final time on Jan. 14 this year.
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