Hudson's Bay hearing on lease deal adjourned as B.C. billionaire Ruby Liu appears without lawyer
Liu said she intends to hire a new lawyer. She was previously represented by both Cassels Brock & Blackwell LLP and Miller Thomson but has parted ways with each.
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Gavin Finlayson, a Miller Thomson lawyer, appeared in court to confirm he was no longer representing Liu, but did not say why.
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Speaking to reporters outside the courthouse later, Liu said she had been dropped by her lawyer 'all of a sudden' on Sunday after a disagreement over whether his firm should be paid $3 million more to represent her.
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Liu said her legal counsel was the topic of a letter she sent Osborne, but declined to offer further details. Osborne had advised her during the court session that parties are not to communicate with the judge outside of the hearing.
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Osborne pressed Liu to find a lawyer in part because it will help her navigate the Bay's creditor protection case, which began in March, when the retailer admitted it was unable to cover bills and had no hope of finding lender support.
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A sales process uncovered no one willing to buy the business, so it liquidated all 80 of its stores and 16 Saks locations.
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The company got 12 bids for 39 leases but chose Liu to buy 28 because the terms she offered were 'the most favourable.'
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A copy of the agreement she entered with the Bay was given to the court over the weekend but sealed. Prior filings, however, show Liu made a deposit of $9.4 million, which would equate to a purchase price of $94 million for 25 leases.
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A package prepared by Liu's former lawyers and obtained by The Canadian Press early June shows she told landlords she could open stores within 180 days of receiving leases and would pour millions into rehabilitating properties.
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Landlords almost immediately panned her plans, saying she doesn't have the suppliers, financing or retail management experience to run a department store.
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Bay lawyer Ashley Taylor told Osborne there has since been 'an ongoing dialogue' between Liu and stakeholders. David Bish, who represents Cadillac Fairview, disagreed and said the landlords remain 'deeply concerned.'
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'This is the hill to die on for landlords,' Bish said.
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To aid in the Bay's wind down, Restore wants the court to appoint a 'super monitor' to subject the department store chain to even more oversight. If the court doesn't agree, Restore suggests appointing Richter Consulting Inc. as a receiver.
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The Bay argued it doesn't need more oversight because it's properly governed. It maintains the Liu deal is the best shot it has at recovering more cash for creditors.
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Pathlight Capital LP, one of the Bay's other lenders, supports the Liu transaction but won't finance the extra time it could take to close the deal.
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Meanwhile, the monitor said more oversight may be appropriate at some point. It's prepared to step up, when necessary.
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Its report also revealed the Bay has several other lease deals in the works. One has been reached with a landlord wanting to buy its own lease for less than $250,000. Another is with an unnamed party wanting seven leases.
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