rue21’s First Amended Joint Plan of Reorganization became effective, and the Company emerged from Chapter 11 protection. The U.S. Bankruptcy Court confirmed the Plan on September 8, 2017.
BankruptcyData notes, “rue21, Inc. arrived in chapter 11 with a transaction structure and process that they believe has preserved and capitalized on the value inherent in its business and brand. That transaction structure, as set forth in the Plan, provides for the following distributions: the DIP ABL Facility will be repaid in full or, with the DIP ABL Lenders’ consent, converted into an Exit ABL Facility; the $50 million new-money DIP Term Loan Facility will be converted into a $50 million exit facility on the effective date of a chapter 11 plan; the $100 million ‘roll-up’ DIP Term Loan Facility will be converted into 33% of the equity interests in reorganized rue21, Inc.; the Prepetition Term Loan Lenders’ Claims will be converted into 63% of the equity interests in reorganized rue21, Inc.; and General Unsecured Creditors will receive 4% of the New Equity of the Reorganized Company and interests in the proceeds of certain avoidance actions.”
BankruptcyData’s Plan Summary continues, “The Valuation Analysis estimates the Debtors’ total enterprise value at approximately $340 million to $465 million assuming an equal weighting of the various valuation methodologies employed, and the implied distributable reorganized equity value will range from approximately $245.1 million to $370.1 million.” Melanie Cox, rue21’s C.E.O., comments, “We are pleased to be moving forward with rue21’s next chapter of growth as a highly performing and distinctive retailer.”
This specialty teen retailer filed for Chapter 11 protection on May 15, 2017, listing $307 million in pre-petition assets. The Company emerged from a previous Chapter 11 filing in May 2003.
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