BankruptcyData’s detailed analysis and summary of Gymboree’s Amended Joint Chapter 11 Plan of Reorganization, dated August 30, 2017, is now available. The U.S. Bankruptcy Court confirmed the Plan on September 7, 2017; however, an effective date has not yet been issued.
BankruptcyData notes, “The Plan provides for the reorganization of the Debtors as a going concern and will significantly reduce long-term debt and annual interest payments and preserve the Debtors’ existing liquidity, resulting in a stronger, de-levered balance sheet. Specifically, the Plan contemplates a restructuring of the Debtors through a debt-for-equity conversion.” BankruptcyData’s Plan Summary continues, “The Valuation Analysis estimates that the potential range of Reorganized Gymboree’s operations on a going concern basis (the “Enterprise Value”) is approximately $400 to $600 million. Based on the potential range of Enterprise Value and assumed net debt of $156 million as of the Effective Date, Lazard estimates an imputed range of potential equity value of $244 to $444 million (assuming an $80 million rights offering).”
BankruptcyData subscribers receive access to the full summary, which provides further details on corporate background, events leading to Gymboree’s June 11, 2017 Chapter 11 filing, recovery specifications and a comprehensive break-down of all claimant classes.
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