Handsome dividends paid to Sears Canada shareholders even as the company was faltering and its employee pension fund was running a deficit are being reviewed by the court-appointed monitor handling the companys insolvency.
The monitor is carrying out a review of certain material transactions, according a new report on the insolvency by the monitor, FTI Consulting Inc., filed in Ontario Superior Court.
The transactions of interest, according to the monitor, include a dividend of $102 million paid to Sears Canada shareholders on Dec. 21, 2012, and $509 million paid on Dec. 6, 2013.
The largest shareholder was U.S. hedge fund manager Edward Lampert, through his holdings in Sears Holdings Corp. in the U.S. and ESL Investments Inc.
Lampert did no…
Read the full article at: https://www.thestar.com/business/2018/01/16/court-monitor-to-review-sears-canada-payout-of-dividends-while-company-was-in-the-red.html
