Cosi Bankruptcy Plan Filed


Cosi filed with the U.S. Bankruptcy Court a Joint Plan of Reorganization and related First Amended Disclosure Statement.

According to the Disclosure Statement, “The Plan provides for the reorganization of the Debtors and for their continued existence as the Reorganized Debtors with 100% of the stock of the Reorganized Debtors being owned by the Debtor’ prepetition Noteholders and the distribution of Cash provided by an affiliate of such Noteholders to creditor.”

In addition, “More specifically, after confirmation, the Debtors will continue operating their Business, but the Debtors will have new ownership and a new capital structure, which will have been accomplished through confirmation of the Plan…the Plan is structured as what is commonly referred to as a ‘pot plan’ in that the Debtors have determined the value of their collective Business operations through the  sale process in which LIMAB…was the successful bidder for substantially all of the Debtors; assets, and that value will be paid in to the Liquidating Trust to be distributed by the Liquidating Trustee to the Debtor’s creditors.”

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