BankruptcyData's detailed analysis and summary of Optima Specialty Steel's Third Amended Joint Chapter 11 Plan of Reorganization, As Modified, dated October 13, 2017, is now available. The U.S. Bankruptcy Court confirmed the Plan on October 16, 2017; however, an effective date has not yet been issued. BankruptcyData notes, "The Third Amended Joint Chapter 11 Plan of Reorganization, as Modified provides for a comprehensive reorganization of the Debtors that will recapitalize the Debtors’ balance sheet and ensure that the Debtors emerge from bankruptcy with a robust capital structure. The Plan will leave creditors (other than Holders of a Class 3-A Claim) unimpaired, paying fixed, undisputed and liquidated claims in full in cash and reinstating contingent, disputed or unliquidated claims. The Debtors believe that the Plan will enable them to emerge quickly from chapter 11 as a financially stronger enterprise that can thrive in the marketplace and maintain its ongoing business relationships with all of their constituencies, including vendors, suppliers, employees, and pensioners." BankruptcyData's Plan Summary continues, "The Financial Projections estimate that the capital expenditures are projected to support maintenance requirements, and no new significant growth opportunities are assumed. 2017 is projected at $1.9 million of maintenance capital spending with 2018 and beyond projected at $2.5 million of annual capital spending. Further the Financial Projections reflect exit financing on October 31st, 2017." BankruptcyData premium subscribers receive access to the full summary, which provides further details on corporate background, events leading to Optima Specialty Steel's December 15, 2016 Chapter 11 filing, recovery specifications and a comprehensive break-down of all claimant classes.
Performance Sports Group filed with the U.S. Bankruptcy Court a Modified Joint Chapter 11 Plan of Liquidation and related Disclosure Statement. According to the Disclosure Statement, "The Plan provides Holders of Parent Equity Interests with two options for receiving their distributions. The Debtors, after consultation with the Committees and the Monitor, included such options to mitigate potential adverse tax consequences that the Reorganized Parent Debtor and Holders of Parent Equity Interests may suffer if distributions were made directly to Holders. The Plan options can result in different tax implications for the Holders of Parent Equity Interests, and such implications may or may not be favorable to the Holders. Given the complexity of cross-border tax implications, no assurances can be given that the Plan options are the best options available to Holders of Parent Equity Interests, that either option will mitigate adverse tax implications for such Holders, or that the Plan options will otherwise impact or affect - positively or negatively - a Holder's tax obligations. Finally, if any Holder of Allowed Parent Equity Interests elects Option 1 and the Liquidation Trust is subject to adverse tax consequences in Canada as a result of such Holder holding Beneficial Trust Interests, any transfer to such Holder and the cancellation of such Holder's Parent Equity Interests may be deemed void ab initio by the Liquidating Trustee, in the Liquidating Trustee's sole discretion, in which event the Holder whose election was deemed null and void shall retain its Allowed Parent Equity Interests in the Reorganized Parent Debtor, and the Reorganized Parent Debtor, the Holder and the Liquidation Trust shall each treat such Holder at all times as if such Holder had elected Option 2." The Court subsequently approved the Disclosure Statement and scheduled a December 7, 2017 hearing to consider the Plan, with objections due by November 30, 2017.
The U.S. Bankruptcy Court approved Sable Natural Resources ' motion to extend the exclusive period during which the Company can confirm a plan until December 11, 2017 and obtain approval of a disclosure statement until November 6, 2017. As previously reported, "On August 14, 2017, this Court entered the Agreed Order Granting in Part and Denying in Part United States Trustee's Motion to Convert Cased to a Case Under Chapter 7 or, in the Alternative, to Dismiss Case….On August 31, 2017, the Debtor filed its Plan of Reorganization Dated August 31, 2017…he Debtor received comments from the U.S. Trustee and creditors regarding objections to the proposed Plan and Disclosure Statement and has been in negotiations to resolve the objections. Additionally, counsel for Debtor was in a week-long trial the week of September 25, 2017, which trial was continued to October 5 and 6, 2017."
The U.S. Bankruptcy Court approved COPSync's sale of assets free and clear and bid procedures in connection with the sale. As previously reported, "After expressing a serious interest in the COPsync, Kologik began a due diligence process that recently culminated in that certain Asset Purchase Agreement dated September 29, 2017 (the 'Stalking Horse APA') by and between the COPsync, on the one hand, and Koligik's wholly owned subsidiary, Kologik Capital, (the 'Purchaser'), on the other. Through the Stalking Horse APA, COPsync will sell its assets in return for a combination of credit, cash and equity. In addition to the Stalking Horse APA, Purchaser purchased an assignment of the Dominion Credit Facility from Dominion on September 29, 2017 and, as a result, is now the holder of that credit facility. As of the date of the filing of the petition, Purchaser is credit bidding the sum of $1,000,000 as a part of its bid under the Stalking Horse APA. Relatedly, Kologik (Purchaser's parent) agreed to assist in funding COPsync's emergency cash needs through (i) a secured note in the amount of $15,000 issued September 22, 2017, and (ii) a secured note in the amount of $16,597.46 issued September 25, 2017 (collectively, the 'Kologik Secured Notes') that were perfected by a UCC-1 filed in Delaware on September 25, 2017. Finally, Kologik (Purchaser's parent) agreed to assist COPsync with its postpetition cash needs by helping fund a $300,000 D.I.P. Loan through an affiliated company, Kologik Financing Partners ('KFP')….Overbid APA shall: specify the amount of cash or other form of consideration acceptable to the Debtor offered by the bidder for the Purchased Assets, with a minimum initial bid comprised of two components: (i) a cash bid of $2,100,000 (computed as Purchaser's $1,000,000 credit bid of the Dominion Credit Facility, plus Purchaser's credit bid of the $300,000 DIP Facility, plus Purchaser's $600,000 bid of cash, plus Purchaser's $100,000 breakup fee, plus the $100,000 minimum overbid increment)."
Peekay Boutiques filed with the U.S. Bankruptcy Court an Amended Chapter 11 Plan of Liquidation and related Disclosure Statement. According to the Disclosure Statement, "The Global Settlement forms the foundation of the Plan, which provides for the Sale of substantially all of the Debtors' assets to the Buyer, subject in all respects to higher or otherwise better offers, the Buyer's assumption of certain liabilities in the Asset Purchase Agreement, provides for certain consideration to be paid by the Buyer directly to certain holders of Claims, and for the consensual and expedited wind-down of the Debtors' Estates and Confirmation of the Plan. In addition, the Plan, if consummated, will consummate the Term B Loan Claims Settlement….On the Effective Date, Buyer shall issue a promissory note (the 'Term B Loan Claims Note') for the benefit of Term B Lenders holding Allowed Term B Loan Claims The Term B Loan Claims Note shall have the following terms: (i) principal amount: $400,000; (ii) no payment of interest; (iii) four (4) year term…'Class 4 Term B Loan Claims will receive no distribution from the Debtors or their Estates under the Plan." The Court subsequently granted interim approval to the Disclosure Statement and scheduled a November 15, 2017 combined hearing to consider final approval of the Disclosure Statement and Plan confirmation.