rue21 filed with the U.S. Bankruptcy Court a Joint Plan of Reorganization and related Disclosure Statement.
According to the Disclosure Statement, “Upon the Effective Date, the Debtors would have reduced approximately $700 million in funded debt from the Debtors’ balance sheet, providing the Debtors with the capital necessary to fund ongoing operations. Upon exiting these Chapter 11 Cases, the Reorganized Debtors’ capital structure will consist of the Exit ABL Facility in the aggregate principal amount of up to $125,000,000 at any time outstanding (with approximately $38.6 million expected to be outstanding on the Effective Date) and the Exit Term Loan Facility in the aggregate principal amount of $50,000,000, plus the amount of any unpaid and accrued interest under the DIP Term Loan Credit Facility as of the Effective Date (which interest shall be capitalized as principal on the Effective Date).”
In addition, “The proceeds of the Exit Facilities, together with cash on hand and cash from operations, will be used to pay administrative claims, priority claims, and the DIP ABL Claims (to the extent not converted into Exit ABL Loans) in full, and to make other distributions to Holders of Claims under the terms of the Plan.” The Court scheduled the following dates: Disclosure Statement objection – June 16, 2017, Disclosure Statement hearing – June 30, 2017, Plan objection deadline – August 11, 2017, Plan confirmation hearing – August 16, 2017.
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