Bankruptcy News

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Bankruptcy/Chapter 11 / Bonds / Retailing

Brookstone Chapter 11 Petition Filed

Brookstone, Brookstone Holdings and related subsidiaries filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 14-10752. The Company, which operates as a specialty retailer, is represented by Adam G. Landis of Landis Rath & Cobb. According to Court documents, "The Debtors entered into a Restructuring Support Agreement (the "Restructuring Agreement") with certain holders of the Second Lien Notes (the "Consenting Noteholders"). Pursuant to the Restructuring Agreement, the Debtors agreed, among other things, to (a) commence these Chapter 11 Cases; (b) obtain approval for the DIP Facility, and (c) prosecute, obtain confirmation of and implement a plan of reorganization which shall be consistent in all material respects with the terms and conditions of the Restructuring Support Agreement, and the Plan Term Sheet. In addition, the Debtors have entered into two agreements with SPB [SPB Acquisition LLC ("SPB") an affiliate of Spencer Spirit Holdings, Inc.]: (a) a Plan Sponsorship Agreement (the "PSA"); and (b) a Stock Purchase Agreement (the "SPA") (together, the "Spencer Agreements"). Under the plan contemplated by and subject to the terms and conditions set forth in the Spencer Agreements, the Plan Term Sheet and the Restructuring Agreement (collectively, the "Restructuring Transaction Agreements"), SPB will acquire the Shares for the Purchase Price. The Restructuring Agreement and Spencer Agreements contemplate, among other things, the filing of a Chapter 11 plan within 20 days after the Petition Date."

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