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October 9, 2018 – RMH Franchise Holdings filed a First Amended Joint Plan of Reorganization [Docket No. 618] and related Disclosure Statement [Docket No. 620]. The Disclosure Statement notes, ”The Plan implements a comprehensive restructuring of the Debtors through the issuance of the Plan Sponsor New Common Stock to the Plan Sponsor, which Plan Sponsor New Common Stock will be exempt from registration under the Securities Act as a private placement under section 4(a)(2) of the Securities Act, and a capital infusion from the Plan Sponsor in the amount of the Plan Sponsor Cash Payment, which is $10,000,000 pursuant to the Funding Commitment. Except as otherwise provided for in the Plan or the Confirmation Order, all Cash required for the payments to be made under the Plan shall be obtained from the Debtors’ and the Reorganized Debtors’ operations and Cash balances, plus the Plan Sponsor Cash Payment and proceeds from Causes of Action, including the Applebee’s Litigation. The Plan Sponsor is ACON or its designated affiliate. ACON directly or indirectly owns substantially [all] of the Equity Interests of the Debtors.”
The following is a summary of claims, classes, voting rights and projected recoveries:
- Class 1 (“Other Secured Claims”) and Class 2 (“Other Priority Claims”) are deemed unimpaired and deemed to accept. Expected recovery is 100%.
- Class 3 (“Credit Agreement Secured Claims”) is deemed impaired and entitled to vote. The projected amount of claims is $61,237,665.32 and claims shall be reinstated in accordance with Amended Credit Agreement.
- Class 4 (“Unsecured Trade Claims”) is deemed to be impaired and entitled to vote. The projected amount of claims is $1,400,000 and the estimated recovery is 50%.
- Class 5 (“General Unsecured Claims”) is deemed to be impaired and entitled to vote. The projected amount of claims is $42,285,057 and the estimated recovery is 10%.
- Class 6 (“Unsecured Convenience Claims”) is deemed to be impaired and entitled to vote. The projected amount of claims is $820,000 and the estimated recovery is 25%.
- Class 7 (“Intercompany Claims”) and Class 8 (“Equity Interests”) are impaired and deemed to reject. Estimated recovery is 0%.
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