BrandsElite remains confident through restructuring

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BrandsElite International Corp is confident it can carry on trading after securing a 30-day reprieve from its principal creditor, the Laurentian Bank of Canada. The financially troubled Canadian duty-free distributor won the breathing space by filing a Notice of Intention to make a proposal under the Bankruptcy and Insolvency Act.

In an official press release, BrandsElite vice-president, finance and chief financial officer Douglas Redhead said: ?The filing gives us an opportunity to find an equity investor and to ensure the continuation of the business. We plan to work through this period of restructuring the debt and to carry on serving our customers.?

On August 17 the Laurentian Bank of Canada formally demanded that BrandsElite repay all of its existing loans, totalling $1,661,526.93. BrandsElite was unavailable for further comment.

The company, based in Ontario and traded on the Toronto Stock Exchange, markets and distributes premium-branded fragrances, cosmetics, liquor products and luxury gift items to duty-free retailers.