Ignite Restaurant Group filed with the U.S. Bankruptcy Court a Chapter 11 Plan of Reorganization and related Disclosure Statement.
According to the Disclosure Statement, “The Plan is structured as a joint plan. The Debtors will pursue all reasonably available actions to maximize distributions under the Plan to Holders of Claims and Interests. On June 5, 2017, the Debtors executed the Stalking Horse Agreement with the Stalking Horse Bidder for the sale (the ‘Sale’) of substantially all of the Debtors’ assets pursuant to the Plan. Under the Stalking Horse Agreement, the Stalking Horse will pay to the Debtors’ estates a cash purchase price of $50,000,000 (less certain purchase price adjustments) and assume certain liabilities of the Debtors.”
In addition, “The Debtors anticipate that the Stalking Horse Agreement will yield gross proceeds to the estates in the amount of over $42,000,000 after payment of Administrative Claims (including accrued professional fees), Priority Tax Claims and Other Priority Claims. The Debtors believe that the value they will realize from the Stalking Horse Agreement constitutes fair market value for their assets and will support a confirmable Plan that will maximize value to their various creditor constituencies and bring a successful conclusion to these Chapter 11 Cases. On that basis the Debtors are prepared to proceed with the sale of their business and assets under the terms of the Stalking Horse Agreement, subject to higher or better bids in accordance with bid procedures to be established by this Court.”
Read more bankruptcy news.
The post Ignite Restaurant Group Bankruptcy Reorganization Plan Filed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.