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Claire’s Stores filed with the U.S. Bankruptcy Court a First Amended Joint Plan of Reorganization and a related Disclosure Statement. According to the Disclosure Statement, “On July 7, 2018, the Debtors and the Consenting Creditors agreed to amend the Restructuring Support Agreement and executed the First Amended Restructuring Support Agreement…As amended, the Restructuring Support Agreement, among other things, (i) permits the Debtors to solicit, develop, and negotiate any and all plans of reorganization that contemplate a sale of some, all, or substantially all of the Debtors’ assets (each, an ‘Alternative Plan’) pursuant to the Marketing Process Order and (ii) extends the milestone for the occurrence of the Effective Date under the Plan to September 30, 2018. The Creditors’ Committee has asserted that the Sponsor’s entry-into the Restructuring Support Agreement results from the Sponsor’s control over the Debtors in violation of the absolute priority rule and the spirit of the Bankruptcy Code. The Debtors and the Sponsor disagree with the Creditors’ Committee’s assertions, and, to date, the Creditors’ Committee has not identified with specificity any basis for such assertions.”
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