Bankruptcy/Chapter 11 / Food, Beverage, & Tobacco / Post-Bankruptcy Stocks
Great Atlantic & Pacific Tea Plan Company Filed
Great Atlantic & Pacific Tea Company filed with the U.S. Bankruptcy Court a Revised Chapter 11 Plan and related Disclosure Statement. According to the Disclosure Statement, “Pursuant to the Plan, the Investors are providing a total New Money Commitment of $490 million in the form of (i) $210 million face amount of privately placed New Second Lien Notes, (ii) $210 million face amount of privately placed New Convertible Third Lien Notes, and (iii) an $80 million New Equity Investment. The proceeds of the New Money Commitment will allow the Debtors to make distributions pursuant to the Plan, including paying certain secured creditors in full in cash, and will provide a cash pool of $40 million, less the amount distributed pursuant to the Substantive Consolidation Settlement, for distributions to General Unsecured Creditors. The Plan provides for a settlement and compromise of the intercreditor issues relating to whether the liabilities and assets of the Debtors should be substantively consolidated for purposes of distributions under the Plan. Except as modified by this Substantive Consolidation Settlement, Claims are treated generally in accordance with the priorities established under the Bankruptcy Code.”
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