CHC Group filed with the U.S. Bankruptcy Court a motion for entry of an order authorizing CHC Global Operations 2008 (ULC) to reject a conference contract (the “Westin Contract”)with a hotel and conference center in Vancouver, Canada for a conference the Debtors had originally planned to hold at the venue in the spring of 2017.
The motion explains, “Debtor GO 2008 has determined that the Westin Contract is no longer required, and continued payment and performance under the agreement is not in the best interest of its estate and would be unduly burdensome on the GO 2008 estate. The Debtors, in their sound business judgment, have determined that the Westin Contract is no longer necessary for, or beneficial to, GO 2008’s business and creates unnecessary and burdensome expenses for Debtor GO 2008’s estate.”
The motion continues, “As part of their ongoing efforts to reduce costs, the Debtors have identified the Westin Contract as an agreement that no longer fits into the Debtors’ business plan and, accordingly, will no longer be utilized by the Debtors and has no utility or value to GO 2008 or the other Debtors. GO 2008 entered into the Westin Contract in a different economic climate than the one facing the Debtors’ industry today; however, today, the Westin Contract is no longer necessary to the Debtors’ operations.”
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