David’s Bridal – Files Chapter 11 Plan and Related Blackline Reflecting Technical Changes

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December 28, 2018 – The Debtors filed a revised Joint Prepackaged Chapter 11 Plan of Reorganization [Docket No. 248] and a related blackline (changed pages only) [Docket No. 249] showing “technical changes” from the version filed on November 19, 2018 [Docket No. 12].

The majority of the changes appear to be made at the behest of Wilmington Trust, the trustee in respect of the Debtors’ $270mn 7.75% notes due 2020 (the “2020 Notes”), including as to the trustee’s fees/expenses and mechanics relating to the distribution to holders of the 2020 Notes (ie Class 5 holders).

The below is a summary of classes, claims, voting rights and expected recoveries (which are unchanged in the revised Plan):

 
  • Class 1 (“Priority Non-Tax Claims”) is unimpaired, deemed to accept and not entitled to vote on the Plan. Expected recovery is 100%.
  • Class 2 (“Other Secured Claims”) is unimpaired, deemed to accept and not entitled to vote on the Plan. Expected recovery is 100%.
  • Class 3 (“Prepetition ABL Claims”) is unimpaired, deemed to accept and not entitled to vote on the Plan. Expected recovery is 100%.
  • Class 4 (“Prepetition Term Loan Claims”) is impaired and entitled to vote on the Plan. The estimated aggregate amount of claims is $481,239,196 and the estimated recovery is 70.8%.
  • Class 5 (“Unsecured Notes Claims”) is impaired and entitled to vote on the Plan. The estimated aggregate amount of claims is $270,000,000 and the estimated recovery is 4.4%.
  • Class 6 (“General Unsecured Claims”) is unimpaired, deemed to accept and not entitled to vote on the Plan. Expected recovery is 100%.
  • Class 7 (“Intercompany Claims”) is unimpaired, deemed to accept and not entitled to vote on the Plan. Expected recovery is 100%.
  • Class 8 (“Intercompany Interests”) is unimpaired, deemed to accept and not entitled to vote on the Plan. Expected recovery is 100%.
  • Class 9 (“Parent Interests”) is impaired, deemed to reject. Estimated recovery is 0%. 

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