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Answers Bankruptcy Reorganization Plan Confirmed

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The U.S. Bankruptcy Court approved Answers’ Disclosure Statement and concurrently confirmed the Company’s Joint Prepackaged Plan of Reorganization.

According to documents filed with the Court, the Plan will do the following: “(i) significantly de-leverage the Debtors’ balance sheet; (ii) provide the Debtors with working capital to fund ongoing operations during the Chapter 11 Cases and post-emergence; (iii) distribute the New Common Stock and Warrants to the holders of First Lien Claims and Second Lien Claims, as applicable; (iv) allow holders of General Unsecured Claims to remain Unimpaired; and (v) maximize recoveries for all key stakeholders.”

This privately-held Internet-based media provider filed for Chapter 11 protection on March 3, 2017, listing more than $100 million in pre-petition assets.

Read more business bankruptcy news.