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贰虫辫谤别蝉蝉听has filed its chapter 11 plan and accompanying disclosure statement in the Delaware Bankruptcy Court, proposing to pay secured claims in full and approximately 10%-15% of general unsecured claims. Only unsecured creditors are entitled to vote on the plan. The projections are based on the听听for approximately $172mn cash consideration and assumed liabilities of $32mn to purchaser Phoenix Retail.
According to the disclosure statement, despite receiving bids for a complete liquidation, the chosen sale transaction to Phoenix Retail was deemed to provide superior value to creditors in comparison to the alternative liquidation scenario. However, the liquidation analysis is not attached to the disclosure statement.
Creditors with secured claims, as well as priority claims, are expected to be paid in full in cash, with the plan outlining 100% recovery for these classes. General unsecured creditors are projected to recover approximately 10%-15% of their $200mn claims based on the sale transaction and听. According to the disclosure statement, the debtor鈥檚听听has already been paid back in full.
The disclosure statement also outlines the company鈥檚 plan to initiate a wind-down process post-confirmation, which includes the liquidation and dissolution of the company.
The disclosure statement hearing is before presiding Judge Karen Owens on September 4 at 1:00 ET.
Jennifer Lappe, Esq.
+1 346-256-1345
