Optima Specialty Steel filed with the U.S. Bankruptcy Court a redacted motion for entry of an order authorizing the Company to (a) enter into an exit financing commitment letter and related fee letter with DDJ Capital Management; (b) incur and pay certain fees, indemnities, costs and expenses in connection therewith and (c) file the fee letter under seal. DDJ Capital Management is the lender; and the interest rate is LIBOR plus 10% per annum cash interest, subject to a 1% LIBOR floor (payable quarterly in arrears). The motion explains, "The effective date of the plan of reorganization confirmed by the Court on June 29, 2017,4 has not occurred, and the exit financing commitment provided by GSO Capital Partners in connection with the Plan has expired. In light of the developments set forth in the Modification Motion, the Debtors have pivoted to DDJ Capital Management, to sponsor an alternative plan transaction that continues to provide for a comprehensive reorganization of the Debtors….The Debtors and their advisors, in consultation with the Modified Plan Support Parties, considered the funding, liquidity and optimal debt structure that will be necessary to consummate the Modified Plan. Ultimately, the Debtors and their advisors, in consultation with the Plan Support Parties, determined the Debtors would require aggregate debt financing of $240 million to consummate the Modified Plan and provide sufficient liquidity to fund the Debtors' operations after emergence from these Chapter 11 Cases, all in the form of the Exit Facility. To the extent the Debtors' cash balances exceed $10.0 million as of the Closing Date, the Commitment Amount shall be reduced dollar-for-dollar." The Court scheduled a September 27, 2017 hearing to consider the exit financing facility, with objections due by September 26, 2017.
Ciber filed with the U.S. Bankruptcy Court an Amended Chapter 11 Plan of Liquidation and related Disclosure Statement. According to the Disclosure Statement, "The Plan provides that, except to the extent that a Holder of an Allowed Claim in Class 3 agrees to a less favorable treatment of its Allowed Claim, in full and final satisfaction, settlement, and release of and in exchange for each Allowed Claim in Class 3, each such Holder shall receive its Pro Rata share of Cash in the General Unsecured Claims Reserve. However, each Holder of an Allowed Class 3 Claim that votes to accept the Plan may make the Class 3 Cash-Out Election on such Holder's Class 3 Ballot or upon allowance of such Class 3 Claim. A Holder of an Allowed Class 3 Claim that makes the Class 3 Cash-Out Election will receive Cash in an amount equal to 35% of such Holder's Allowed Class 3 Claim on the Effective Date or as soon as reasonable practicable thereafter. As indicated in Article I.C hereof, it is estimated that Holders of Allowed Class 3 Claims will receive a recovery of between 37% and 100% of the face amount of their Allowed Claims. Although Holders of Allowed Claims in Class 3 that make the Class 3 Cash-Out Election will receive a lower recovery, they will receive their distributions before other Holders of Allowed Claims in Class 3. The Class 3 Cash-Out Election will also serve as a benefit to the Debtors' Estates, because it will result in additional Cash being available for distribution on account of: (a) Allowed Class 3 Claims for which a Class 3 Cash-Out Election is not made; and (b) Allowed Interests in Class 4 (to the extent that there is a recovery for Class 4)." The Court scheduled a November 15, 2017 hearing to consider the Plan, with objections due by November 1, 2017.
The U.S. Bankruptcy Court granted conditional approval to the motion to convert T3M's Chapter 11 reorganization to a liquidation under Chapter 7 or, alternatively, to dismiss the case. The order states, "If the Debtor does not file a sale procedures motion (the 'Procedures Motion') by 5:00 p.m. Pacific Time on September 21, 2017, the Debtor's chapter 11 case shall be converted to a case under chapter 7 of the United States Bankruptcy Code without an opportunity for further argument or briefing and the UST shall appoint a chapter 7 trustee, provided, however that the UST and/or Lender Collections may request that such conversion not take place, which such request shall be considered by the Court If the Procedures Motion is timely filed, the Motions are continued and the Court shall hold a hearing to consider the Procedures Motion on September 28, 2017 at 1:30 p.m. Pacific Time. The only issues to be considered at the hearing are whether the Procedures Motion should be granted and whether the Debtor has cured its UST quarterly fee delinquency. c. If the Procedures Motion is granted, the conversion of the Debtor's chapter 11 case shall be suspended pending a further order of the Court which may be specified in connection with the hearing on the Procedures Motion, or at such later date as specified by the Court; and d. If the Procedures Motion is denied, absent a request to the contrary from the UST and/or Lender Collections, the Debtor's chapter 11 case shall be converted forthwith to a case under chapter 7, and the UST shall appoint a chapter 7 trustee."
Hampshire Group filed with the U.S. Bankruptcy Court a fifth motion for an order extending the exclusive periods during which the Debtors may file a Chapter 11 plan and solicit acceptances thereof, through and including October 20, 2017 and December 20, 2017, respectively. The motion explains, "The Solicitation Motion originally sought a confirmation hearing date of September 13, 2017, one week prior to the current expiration of the Exclusive Filing Period under the Fourth Extension Order. Under the Solicitation Procedures Order, the confirmation hearing date has now been scheduled for September 27, 2017, one week after the current expiration of the Exclusive Filing Period. The brief 30-day extensions of the Exclusive Periods requested in this Motion will help to maintain the status quo in these cases through the anticipated effective date of the Plan and will avoid the risk of any unnecessary distractions as the Plan Proponents seek to obtain confirmation of the Plan. If, as the Debtors anticipate, the Plan will be confirmed on or about September 27, 2017, then on or about the Plan effective date, the Debtors intend to file a notice withdrawing this Motion. The Debtors submit that the extensions of the Exclusive Periods requested in this Motion will not prejudice any party in interest but, rather, will further the plan proponents' efforts to obtain confirmation of the Plan, which the Debtors believe is in the best interests of their estates and creditors."
The Commonwealth of Puerto Rico and The Bank of New York Mellon filed with the U.S. Bankruptcy Court separate objections to the motion of Bettina Whyte, the COFINA agent, for an order (i) confirming that 48 U.S.C. Section 2125 applies to the COFINA agent; (ii) confirming retention of local counsel and (iii) clarifying payment of fees and expenses of the COFINA agent and her professionals. The Debtors assert, "The Oversight Board believes the COFINA Agent and Commonwealth Agent (collectively, the 'Agents') should only receive the protections of PROMESA section 105 for acts within their respective scope of authority,5 and objects to the extent any protections would extend to acts outside such scope of authority. Indeed, it appears the COFINA Agent intends to exceed the scope of her authority. Her application to retain a financial advisor [ECF No. 1273] explains the advisor is needed to analyze the Commonwealth fiscal plan….The COFINA Agent was appointed and authorized to resolve a wholly legal dispute, namely whether the Commonwealth or COFINA owns certain sales and use taxes. The COFINA Agent is not authorized to do anything else…Accordingly, any protection granted by PROMESA section 105 for acts performed by the Agents should be limited to those performed within the scope of authority granted by the Stipulation and Order. The Agents should not receive any protection for acts that exceed their authorized scope, and all rights and remedies of the Oversight Board and the Debtors should be fully preserved with respect thereto."