Cosi First Amended Joint Plan of Reorganization became effective, and the Company emerged from Chapter 11 protection. The U.S. Bankruptcy Court confirmed the Plan on April 25, 2017.
BankruptcyData’s detailed Plan Summary notes, “The Plan provides for the reorganization of the Debtors and for their continued existence as the reorganized Debtors with 100% of the stock of the Reorganized Debtors being owned by the Debtors’ prepetition Noteholders and the distributions of cash provided by an affiliate of such Noteholders to creditors through the Plan. After confirmation, the Debtors will continue operating their business, but the Debtors will have new ownership and a new capital structure.”
BankruptcyData’s Plan Summary continues, “The Liquidation Analysis for Reorganized Cosi, Inc. estimates the Expected Distribution Under Distribution to be between $4.1 million and $4.64 million. The recovery rate to the General Unsecured Claims is estimated to be 0% – 16.9%.” The new restructured entity is now owned by MILFAM II, AB Value Partners, AB Value Management and AB Opportunity Fund. Vicki Baue, the Company’s vice president, states, “We have an energized team, a much stronger capital structure and a solid base of restaurants.”
This fast-casual restaurant operator filed for Chapter 11 protection on September 28, 2016, listing $42 million in pre-petition assets.
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