Aeropostale filed with the U.S Bankruptcy Court a Third Amended Joint Chapter 11 Plan of Liquidation and related Disclosure Statement.
According to the Disclosure Statement, “The Plan provides for distribution of proceeds from the Sale Transaction, pursuant to which the Debtors sold substantially all of their assets to Aero OpCo LLC….The proceeds from the Sale Transaction have been and will continue to be used to fund the ongoing wind-down costs of the Chapter 11 Cases and will be used to fund Distributions under the Plan. The wind-down of the Debtors’ estates have cost approximately $7 million to date. The Debtors estimate that the ongoing wind-down costs of the Chapter 11 Cases will amount to approximately $2 million….Class 3 is Impaired by the Plan. Each holder of a Term Loan Secured Claim is entitled to vote to accept or reject the Plan.”
In addition, “The Term Loan Secured Claim shall be an Allowed Claim in the amount of $150 million, plus accrued and unpaid interest in the amount of $10,359,927, plus all fees and costs recoverable under the Term Loan Agreement, minus any amounts the Debtors pay to the Term Loan Lenders before Confirmation of the Plan. Pursuant to the Cash Collateral Orders, the Term Loan Lenders have received an interim distribution in the amount of $126,500,000….Class 5 is Impaired by the Plan. In light of the fact that the Term Loan Secured Claim and the Term Loan Diminution Claim are not anticipated to be satisfied in full, Holders of General Unsecured Claims shall not receive or retain any property under the Plan on account of such Claims.”
The Court scheduled a January 25, 2018 hearing to consider the Disclosure Statement.
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