Claire’s Stores filed with the U.S. Bankruptcy Court a Chapter 11 Plan of Reorganization and related Disclosure Statement.
According to the Disclosure Statement, “The Plan encompasses a comprehensive restructuring of the Debtors, which is the product of the Debtors’ arm’s-length negotiations and an agreement with certain holders of indebtedness arising under the (i) 6.125% First Lien Notes Documents, (ii) the 9.00% First Lien Notes Documents, (iii) the Prepetition First Lien Term Loan Documents, (iv) the Second Lien Notes Documents, and (v) the Unsecured Notes Documents (the ‘Ad Hoc First Lien Group’)….In connection with negotiation of the Plan, the Debtors, the Sponsor, and the Ad Hoc First Lien Group entered into the Restructuring Support Agreement.”
In addition, “The Restructuring Support Agreement provides that the Sponsor and the Consenting Creditors will support the Plan and the restructuring transactions contemplated thereby, subject to the terms and provisions of the Restructuring Support Agreement. In addition, pursuant to the Restructuring Support Agreement, the Debtors have agreed to move forward expeditiously with confirmation and consummation of the Plan and to be subject to certain milestones which, if not achieved, enable the Requisite Consenting Creditors to terminate the Restructuring Support Agreement. The relevant milestones to be achieved include (a) commencement of the Rights Offering and the solicitation of votes in connection with the Plan no later than the first business day that is at least seven (7) days after entry of the Disclosure Statement Approval Order, (b) entry of the Confirmation Order by no later than seventy-five (75) days after entry of the Disclosure Statement Approval Order, and (c) the occurrence of the Effective Date under the Plan by no later than September 14, 2018.”
The Court scheduled a May 30, 2018 hearing to consider the Disclosure Statement.
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