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Gymboree Backstop Commitment Approval Sought

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Gymboree filed with the U.S. Bankruptcy Court a motion for entry of an order (i) authorizing (a) the Debtors to assume a backstop commitment agreement and (b) the payment and allowance of related fees and expenses as administrative claims.

The motion explains, “Specifically, the Debtors seek: (a) the authority to (i) pay to the Backstop Commitment Parties upon the closing of each of the Rights Offerings a non-refundable aggregate premium in an amount equal to $4.0 million in the form of New Gymboree Common Shares or, in the event that the Backstop Commitment Agreement is terminated for any reason other than by the Debtors due to the failure of any Backstop Commitment Party to complete each of the Rights Offerings in violation of the Backstop Commitment Agreement or due to the breach of any Backstop Commitment Party of any representation, warranty or other agreement made by such Backstop Commitment Party pursuant to the Backstop Commitment Agreement, subject to certain conditions contained therein, $4.0 million in cash (i.e., 5.0 percent of the maximum Rights Offering Amount (such amount, the ‘Maximum Rights Offerings Amount’)) upon such termination (in either case, the ‘Commitment Premium’) and (ii) immediately begin to reimburse and pay the reasonable and documented fees and expenses of the Backstop Commitment Parties’ legal and other advisors as provided for under the Backstop Commitment Agreement (the ‘Expense Reimbursement’); and (b) the allowance of the Commitment Premium and Expense Reimbursement as administrative claims in accordance with the Backstop Commitment Agreement.”

The Court scheduled a July 11, 2017 hearing on the motion.

Read more Gymboree retail bankruptcy news.

The post Gymboree Backstop Commitment Approval Sought appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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