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RCS Capital RSA Supplement Filed

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RCS Capital filed with the U.S. Bankruptcy Court a supplement to its motion for an order authorizing the Debtors to assume the restructuring support agreement (RSA) and enter into amendment No. 1 to the RSA and related exit financing letters.

The supplement explains, “Pursuant to the RSA Amendment, the Debtors and the Supporting Parties…have agreed to certain modifications to the milestones under the Restructuring Support Agreement, in each case to: (i) attach specific dates to milestones that were previously measured by counting days from the Petition Date; (ii) account for the Court’s availability to hold specific hearings; (iii) provide consensual extensions in response to requests for additional time from the Committee; or (iv) accommodate the observance of certain holidays by several individuals involved in these cases. These modifications are as follows: Entry of Final DIP order, within thirty-five (35) days of the petition date (previous) and new is set on March 6, 2016; RSA assumption order deadline within thirty-five (35) days of the petition date (previous) and new is set on March 17, 2016; disclosure statement order deadline within forty (40) days of the petition date (previous) and new is set on March 22, 2016; and confirmation order deadline on May 1, 2016 (previous); and new on May 2, 2016; and plan effective date on May 15, 2016 (previous) and new on May 16, 2016.”

The Supplement continues, “The Exit Facility Lenders shall receive, as discount on the Exit Facility (as the same may be increased pursuant to the provisions under the heading of ‘Facility Structure’ in the Exit Facility Term Sheet) (the ‘Exit Base Discount’), a share of 13.5% of the common stock of Reorganized RCS on a pro rata basis, based on each Exit Facility Lender’s share of the Exit Facility. Exit Backstop Discount. In addition to the discount received by the Backstop Parties for their Exit Facility Loans, each Backstop Party shall receive, as additional discount on the Exit Facility (the ‘Exit Backstop Discount’), a share of 4.0% of the common stock of Reorganized RCS based on such Backstop Party’s pro rata share of the aggregate Exit Facility (without giving effect to any Exit Facility Increase) held by all Backstop Parties.”

The Court scheduled a March 16, 2016 hearing to consider the amended RSA, with objections due by March 9, 2016.” Read more RCS Capital bankruptcy news.