Caroline Neron gets a last minute loan
In January, the jewelery and accessories business came under the protection of the Companies’ Creditors Arrangement Act, the last step before going bankrupt if there is no agreement with those to whom she owes money.
M me Nero is presented to the bankruptcy court Monday morning in Montreal.
The Registrar of the Court has accepted the loan, which is interim funding in the reorganization process, to “continue to wait for better days,” said Ronald Gagnon, Senior Vice President of BDO Solutions, the trustee responsible for the file.
It was also granted to the company Boutiques Néron inc. additional time to prepare its proposal to creditors, to be submitted by May 10.
The $ 400,000 loan will be disbursed in two installments, including one this week. The money comes from a private lender, said Mr. Gagnon.
Keep your head out of the water
These funds will keep the company above water while sales are low – a typical situation at this time of year, says Gagnon. But he believes that this is also due to the uncertainty created by the restructuring of the company.
“It will make it possible to survive, purely and simply. There was a lack of cash, he explained. Without this loan, we would probably not have been able to pay the payroll as of this Thursday. ”
He anticipates that sales will get a boost with Mother’s Day coming up. He is also pleased with the conditions attached to the loan, which he describes as “advantageous”. This will allow the continuation of the recovery announced last January.
The loan was not disputed Monday morning as creditors had hinted that it would be. M me Nero was relieved with this outcome, while living a difficult period, he said.
The next step is to submit the proposal to the creditors, who will have to vote on it.