Perfumania Holdings filed with the U.S. Bankruptcy Court a Revised Prepackaged Joint Chapter 11 Plan of Reorganization and related Disclosure Statement.
According to the Disclosure Statement, “The Plan provides for the following key economic terms and mechanics: All creditors of the Debtors will be unimpaired and have their claims either reinstated or paid in full in cash. In addition, the Debtors Intercompany Interests will be reinstated to preserve the Company’s existing corporate structure. Interests in Perfumania will be cancelled pursuant to the Plan and Holders of Interests in Perfumania shall receive no property under the Plan on account of such Interests. Holders of Interests in Perfumania (other than NewHoldCo), however, will have the opportunity to receive $2.00 in cash per share consideration (the ‘Releasing Stockholder Consideration’) by electing to provide the Stockholder Release set forth in Article 9.5 of the Plan, pursuant to the instructions provided in the Stockholder Release Opt-In Form and in this Disclosure Statement.”
In addition, “The Releasing Stockholder Consideration will be funded by NewHoldCo, which will provide a new equity infusion to Perfumania in Cash in the amount of $14,263,460. In exchange for the NewHoldCo Equity Investment, NewHoldCo will receive 100% of the New Perfumania Common Stock issued under the Plan….On the Effective Date, the Reorganized Debtors, as borrowers, will enter into an asset-based revolving credit facility in the principal amount of up to $100 million (the ‘Exit Facility’). The proceeds of the Exit Facility will fund (i) the repayment of the DIP Facility Claims, (ii) distributions under the Plan, and (iii) be used for general working capital purposes.”
The Court scheduled a combined hearing October 6, 2017 hearing to consider both the Plan and Disclosure Statement, with objections due by September 28, 2017.
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