DavidsTea creditors to split $18M

MONTREAL—Insolvent beverage company DavidsTea Inc. says creditors have approved its plan of arrangement to distribute about $18 million to them in Canada and the U.S.

A meeting saw a majority of shareholders in separate votes in both countries approve the plan. The votes cast represented at least two-thirds of the dollar value of claims in each country.

The Montreal-based company says it will seek a sanction order from the Quebec Superior Court on Wednesday, followed a day later by recognition of the order from the United States Bankruptcy Court for the District of Delaware under Chapter 15 of the United States Bankruptcy Code.

DavidsTea filed for creditor protection under the Companies’ Creditors Arrangement Act on July 8.

The company says it lost $55.9 million last year and sales plunged 38 per cent.