According to the U.S. Bankruptcy Court docket, Quiksilver filed a First Amended Joint Chapter 11 Plan of Reorganization and related Disclosure Statement.
Under the Plan, the reorganized Debtors’ debt at emergence will be comprised of the following: (i) an exit facility of up to $ million, (ii) an estimated €150 million of Euro Notes and (iii) $ 48 million of European lines of credit and other borrowing facilities. Upon emergence, the reorganized Debtors anticipate having liquidity of approximately $43 million due to a combination of cash-on-hand and availability under the exit facility.
According to the Disclosure Statement, “On the Effective Date, Reorganized Quiksilver will authorize and issue the New Quiksilver Common Stock. Shares of New Quiksilver Common Stock will be distributed on a fully diluted basis (excluding any further dilution attributable to the MIP) and assuming that the Euro Notes Exchange Offer is fully consummated, as follows: (a) first, 19% to Holders of Allowed Secured Notes Claims; (b) second, up to 77% to Rights Offering Participants under the Rights Offerings, which, for the avoidance of doubt, shall dilute subpart (a); and (c) third, 4% to the Backstop Parties under the Backstop Commitment Letter….If the Euro Notes Exchange Offer is not consummated pursuant to its terms, then the value of the New Quiksilver Common Stock as of the Effective Date will be approximately $221 million. Stock will be distributed as follows, on a fully diluted basis (excluding any further dilution attributable to the MIP): (a) first, 25% to holders of Allowed Secured Notes Claims; (b) second, up to 70% to Exit Rights Offering Participants under the Exit Rights Offering; and (c) third, 5% to the Backstop Parties under the Backstop Commitment Letter.”
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