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4Licensing Plan Confirmed

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The U.S. Bankruptcy Court confirmed 4Licensing’s Combined Chapter 11 Plan of Reorganization and Disclosure Statement.

According to documents filed with the Court, “The Debtor shall issue New Common Stock in exchange for Allowed Secured Claims and cash. Buyer shall purchase 38,327 shares of the New Common Stock for the total purchase price of $462,673 that represents 38.3% of the New Common Stock. Debtor shall issue 58,000 shares of New Common Stock to Prescott in payment for that portion of the Allowed Prescott Secured Claim represented by Prescott Note 1 and such shares shall represent 58% of the New Common Stock. Debtor shall grant an option to Rudd whereby Rudd can acquire 3,673 shares of New Common Stock in satisfaction of the Allowed Rudd Secured Claim and such shares shall represent 3.7% of the New Common Stock.”

In addition, “In the event that Rudd elects to receive cash in satisfaction of its Allowed Class 3 Claim, Buyer will purchase the shares of New Common Stock offered to Rudd (3,673 shares) for the additional price of $44,344. Buyer and Prescott will be the sole shareholders of Reorganized Debtor on the Effective Date unless Rudd shall have exercised its option to purchase New Common Stock.” This licensing and technology provider filed for Chapter 11 protection in September 2016, listing $3.6 million in pre-petition assets.

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