By Chris Wack
Loyalty Ventures Inc. said Friday that it and certain of its subsidiaries filed voluntary petitions for relief under chapter 11 of the U.S. bankruptcy code in the U.S. Bankruptcy Court for the Southern District of Texas.
Also Friday, LoyaltyOne Co., a subsidiary of the company, sought protection under the Companies' Creditors Arrangement Act with the Ontario Superior Court of Justice.
In connection with the CCAA proceedings, LoyaltyOne filed motions seeking Canadian Court approval under the CCAA of a sale and investment solicitation process.
Bank of Montreal on Friday said it has agreed to buy the AIR MILES Reward Program business from a subsidiary of Loyalty Ventures for an undisclosed sum.
The consummation of the sale transaction is conditioned upon LoyaltyOne not receiving a more favorable offer from another party in accordance with the sale and investment solicitation process, and other customary closing conditions.
The company believes that BMO's acquisition of AIR MILES would secure the program and better position AIR MILES to continue delivering its leading loyalty program to nearly 10 million Canadian collectors.
In connection with the chapter 11 cases, the company has filed customary motions authorizing it to proceed with its operations in the ordinary course. The company currently expects that the intercompany debtor-in-possession facility will provide sufficient liquidity to meet its financial obligations during the duration of the chapter 11 cases.
Loyalty Ventures also said Friday that it intends to voluntarily delist its common stock from the Nasdaq Global Select Market. The company's board has notified Nasdaq of its intent to voluntarily delist its common stock, and will file a notice on Form 25 relating to such delisting with the SEC on or about March 20.
The company has not arranged for listing or registration of its stock on another national securities exchange.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
March 10, 2023 07:28 ET (12:28 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
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