The U.S. Bankruptcy Court confirmed Gymboree’s Amended Joint Chapter 11 Plan of Reorganization. Gymboree announced that the Company anticipates completing its restructuring and emerging from Chapter 11 protection by the end of the month – after conditions of the Plan are satisfied.
Under the Plan, a comprehensive recapitalization of Gymboree will be completed that will eliminate more than $900 million of debt, establish a sustainable capital structure, right-size the Company’s store footprint and position the business for long-term growth and success. “We are very pleased with the Court’s approval of our Plan, which marks a major milestone in Gymboree’s restructuring process and facilitates a path forward to our emergence as a stronger and more competitive organization,” comments Daniel Griesemer, president and C.E.O. of Gymboree.
As previously reported, “Except as otherwise provided in the Plan in full and final satisfaction of each Allowed Class 5 Claim, each Holder thereof shall receive its Pro Rata share of the GUC Distribution in one or more distributions; provided, that (a) Holders of Term Loan Deficiency Claims shall not receive any recovery on account of such Claims, (b) neither the Debtors nor the Reorganized Debtors, as applicable, shall receive any recovery on account of any Unsecured Note Claim, and (c) neither the Consenting Creditors that are party to the Restructuring Support Agreement…nor any of their Affiliates who are bound by the Restructuring Support Agreement shall receive any recovery on account of any Unsecured Note Claim.”
This children’s apparel retailer filed for Chapter 11 protection on June 11, 2017, listing $1.2 billion in assets.
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