Update: Laid-Off Sears Workers Land Hardship Fund

In an earlier blog, we noted that Sears Canada had agreed to create a fund for former employees who were denied severance payments while the company restructured. Now, according to the Financial Post, Sears' creditors say that they will seek a motion to lift the court-ordered stay which prevents them from exercising their rights on Sears' unpaid debts.

Recall that a debtor company can seek an initial order from the court that grants them a 'stay' against its creditors while it renegotiates or restructures its debts, but that this stay is not indefinite. The creditors have said that they will seek to remove the stay to go forward with a claim of 'negligent misrepresentation' and 'oppression' against Sears leadership.