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 / Bonds

Gymboree Plan Effective

Gymboree's Joint Chapter 11 Plan of Reorganization became effective, and the Company emerged from Chapter 11 protection. The U.S. Bankruptcy Court confirmed the Plan on September 7, 2017. BankruptcyData's detailed Plan Summary notes, "The Plan provides for the reorganization of the Debtors as a going concern and will significantly reduce long-term debt and annual interest payments and preserve the Debtors' existing liquidity, resulting in a stronger, de-levered balance sheet. Specifically, the Plan contemplates a restructuring of the Debtors through a debt-for-equity conversion." BankruptcyData's Plan Summary continues, "The Valuation Analysis estimates that the potential range of Reorganized Gymboree's operations on a going concern basis (the "Enterprise Value") is approximately $400 to $600 million. Based on the potential range of Enterprise Value and assumed net debt of $156 million as of the Effective Date, Lazard estimates an imputed range of potential equity value of $244 to $444 million (assuming an $80 million rights offering)." According to a corporate release, Gymboree's new competitive financial and operating structure will allow the Company to invest in and grow the business over the long term. The Company has received an $85 million new term loan from Goldman Sachs and access to a $200 million revolving credit facility from Bank of America Merrill Lynch and Citizens. Gymboree's pre-petition term loan lenders--including Searchlight, Apollo Global Management, Oppenheimerfunds, Brigade Capital Management, Marblegate, Nomura Securities International and Tricadia Capital Management--are the Company's new owners. Daniel Griesemer, president and C.E.O. of Gymboree, states, "With the support of our new equity owners, this process has allowed us to secure the Company's long-term financial health, and we are excited about the opportunities ahead as we turn our full focus toward executing our strategic Product, Brand and Omni-channel initiatives." This children's apparel retailer filed for Chapter 11 protection on June 11, 2017, listing $1.2 billion in pre-petition assets. Visit BankruptcyData for the full Plan Summary.

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