Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11 / Retailing

Brookstone Plan Filed

Brookstone filed with the U.S. Bankruptcy Court a Revised First Modified Joint Chapter 11 Plan of Reorganization and related Disclosure Statement. According to the Disclosure Statement, “Brookstone commenced these Chapter 11 Cases with an agreement to sell the common stock of reorganized Brookstone Holdings Corp. (the ‘New Common Stock’) to SPB Acquisition LLC (‘SPB’ or the ‘Plan Sponsor’), an affiliate of Spencer Spirit Holdings, Inc. (‘Spencer’s’)…, subject to higher and better offers. To ensure that the value of the Debtors’ businesses is maximized, the Debtors will hold an auction for the New Common Stock (the ‘Auction’), with SPB serving as the ‘stalking horse’ bidder, subject to the approval of the Bankruptcy Court. An ad hoc group (the ‘Ad Hoc Committee’) of holders of the Debtors’ 13.00% Second Lien Senior Secured Notes due 2014 (the ‘Second Lien Notes’) entered into a restructuring support agreement (the ‘Support  Agreement’) whereby the Ad Hoc Committee agreed to support the SPA and the Plan. Additionally, the Official Committee of Unsecured Creditors formed in these Chapter 11 Cases (the ‘Committee’) supports the SPA and Plan in light of a global settlement among the Debtors, the Ad Hoc Committee, SPB, and the Committee that was reached on or about April 25, 2014. As a result of the global settlement, holders of Allowed General Unsecured Clams shall be entitled to greater recoveries than they otherwise would have in the absence of the global settlement….The SPA provides for SPB’s purchase of all of the newly issued capital stock of Reorganized HoldCo for aggregate consideration of $146,265,000, consisting of $120,000,000 in cash, $7,500,000 in notes, and the assumption of certain expressly enumerated liabilities (the ‘Purchase Price’), subject to the terms and conditions contained therein. After extensive good faith and arm’s length negotiations, the Debtors entered into that certain Plan Sponsorship Agreement, dated as of April 3, 2014, by and among the Debtors and SPB (the Plan Sponsorship Agreement).”

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