Gibson Brands – Court Declares Plan Effective, Gibson Emerges from Bankruptcy

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November 2, 2018 – Gibson Brands Fifth Amended Joint Chapter 11 Plan of Reorganization became effective and the Company emerged from Chapter 11 protection [Docket No. 949]. The Court confirmed the Debtors’ Plan [Docket No. 842] on October 2, 2018 [Docket No. 872]. 

The following is a summary of classes, claims, voting rights and treatment under the Plan: 

  • Class 1 (Other Priority Claims) is unimpaired and is deemed to accept. Estimated allowed claims are $0 and estimated recovery is 100%. 
  • Class 2 (Other Secured Claims) is unimpaired and is deemed to accept.  Estimated allowed claims are $0 and estimated recovery is 100%. 
  • Class 3 (ABL Revolver Claims) is unimpaired and is deemed to accept.  Estimated allowed claims are $0 and estimated recovery is 100%. 
  •  Class 4 (Domestic Term Loan Claims) is unimpaired and is deemed to accept. Estimated allowed claims are $77.4 million and estimated recovery is 100%. 
  • Class 5 (Allowed Prepetition Secured Notes Claims) is impaired and is entitled to vote. According to an addendum to the Disclosure Statement filed on October 13, 2018 [Docket No. 777], estimated allowed claims are $383,227,865 and estimated recovery is 52.7%.  
  • Class 6 (General Unsecured Claims – (Other than Class 7, 8 and 9 Claims)) is impaired and is entitled to vote.  According to an addendum to the Disclosure Statement filed on October 13, 2018 [Docket No. 777], estimated allowed claims are $239 million to $284 million and estimated recovery is 5.1% to 10.8%.
  • Class 7 (General Unsecured Claims Against Gibson Holdings) is impaired and is entitled to vote. According to an addendum to the Disclosure Statement filed on October 13, 2018 [Docket No. 777], estimated allowed claims are $413,163,763 and estimated recovery is 20.9%.
  • Class 8 (Convenience Class Claims) is impaired and is entitled to vote. According to an addendum to the Disclosure Statement filed on October 13, 2018 [Docket No. 777], estimated allowed claims are $2.0 million and estimated recovery is 50.0%.
  • Class 9 (Intercompany Claims) is impaired/unimpaired and is entitled/not entitled to vote. According to the most recent Disclosure Statement, estimated recovery is approximately 100% or 0%. 
  • Class 10 (Equity Interests in Gibson) is impaired and is deemed to reject. Estimated recovery is 0%. 
  • Class 11 (Class 11 (Equity Interests in Subsidiaries (Other than Excluded Debtor Subsidiaries)) is unimpaired and is deemed to accept. Estimated recovery is 100%.
  • Class 12 (Equity Interests in Excluded Debtor) is impaired and is deemed to reject. Estimated recovery is 0%. 

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