The U.S. Bankruptcy Court approved Cosi’s Disclosure Statement and scheduled an April 25, 2017 hearing to consider its Joint Plan of Reorganization.
According to documents filed with the Court, “The Plan Settlement is between the Debtors and the Supporting Parties. The Supporting Parties consist of LIMAB (the initial stalking horse bidder for the Debtors’ assets) and the Noteholders in their capacities as both (i) pre-petition secured Claim Holders, with pre-petition Liens the validity of which the Debtors dispute, and (ii) the DIP Lenders, with an undisputed superpriority DIP Facility Claim. Under the Plan Settlement, the Liquidating Trust will be funded by the Operating Agreement Payment, which is an approximation of the purchase price which LIMAB offered to pay as a stalking horse bidder in connection with the Asset Purchase Agreement.”
In addition, “Under the Plan Settlement, the Noteholders will receive, on account of their $5,000,000 Allowed Noteholder Secured Claims, (i) all of the New Stock in the Reorganized Debtors; (ii) LIMAB will receive a payment from the Liquidating Trustee in the amount of [625,000], which will be treated as a reduction of the Operating Agreement Payment; and (iii) after General Unsecured Creditors other than the Noteholders receive aggregate Distributions of $1,500,000 the Noteholders will receive, on account of their $2,786,195.05 Allowed Noteholder General Unsecured Claims, 40% of any funds available for subsequent Distributions to General Unsecured Creditors, which shall be paid to LIMAB and treated as a reduction of the Operating Agreement Payment.”
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