Crailar Technologies Inc. and certain of its subsidiaries obtained an initial order from the Supreme Court of British Columbia under the Companies’ Creditors Arrangement Act (CCAA) granting it protection from creditors while it devises a reorganization plan.

The terms and conditions of the restructuring plan have not yet been determined by Crailar, which has partnered with Adidas Group, Levi Strauss & Co. and other companies to commercialize its bast fiber technology for use in textiles.

The court granted protection under the CCAA for an initial period expiring on Wednesday Nov. 25, 2015 to be extended as required and approved by the court. The court has set a further hearing date of Nov. 25, 2015, at which time an extension of the protection under the CCAA will be sought. The CCAA filing applies to Crailar, Crailar Inc., Hemptown USA Inc., 0697872 B.C. Ltd., Crailar Fiber Technologies Inc. and HTNaturals Apparel Corp. While Crailar and its subsidiaries are under CCAA protection, creditors and others are stayed from pursuing any claims or enforcing any rights against the companies.

After careful consideration of all available alternatives, the Board of Directors of the company determined that it was in the best interests of the company and all of its stakeholders to file for an application for creditor protection under the CCAA, the company said in a statement released Nov. 11.

“Under the CCAA proceedings, it is expected that the company’s operations will continue uninterrupted in the ordinary course of business and obligations to employees, key suppliers of goods and services and obligations to the company’s customers, after the filing date, will continue to be met on an ongoing basis,” the company said.

Under the initial order the company’s management will remain responsible for the day-to-day operations of the company and the Board of Directors has remained intact. Crailar expects to apply for recognition of the initial order under chapter 15 of title 11 of the US Code.

Pursuant to the initial order, The Bowra Group Inc. has been appointed as monitor in the CCAA proceeding.

All inquiries regarding the CCAA proceeding should be directed to the Monitor (Martin Hyatt, (604) 689-8939(604) 689-8939 Information about the CCAA proceeding, including all court Orders and the Monitor’s reports, will be available on the Monitor’s website at www.bowragroup.com/engagements.

Crailar’s business operations consist primarily of licensing its Crailar processing technologies to produce Crailar fibers in the non-woven, yarn and textile industries. Crailar Flax Fiber is a sustainable alternative fiber with performance, consumer preference, environmental advantage, and ‘natural feel’ suitable for businesses and consumers in the woven and non-woven markets.

Crailar is headquartered in Victoria, British Columbia.