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rue21 Bankruptcy Plan Summarized

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BankruptcyData’s detailed analysis and summary of rue21’s First Amended Joint Plan of Reorganization, dated July 12, 2017, is now available. The U.S. Bankruptcy Court confirmed the Plan on September 8, 2017; however, an effective date has not yet been issued.

BankruptcyData notes, “rue21, Inc. arrived in chapter 11 with a transaction structure and process that they believe has preserved and capitalized on the value inherent in its business and brand. That transaction structure, as set forth in the Plan, provides for the following distributions: the DIP ABL Facility will be repaid in full or, with the DIP ABL Lenders’ consent, converted into an Exit ABL Facility; the $50 million new-money DIP Term Loan Facility will be converted into a $50 million exit facility on the effective date of a chapter 11 plan; the $100 million ‘roll-up’ DIP Term Loan Facility will be converted into 33% of the equity interests in reorganized rue21, inc.; the Prepetition Term Loan Lenders’ Claims will be converted into 63% of the equity interests in reorganized rue21, inc.; and  General Unsecured Creditors will receive 4% of the New Equity of the Reorganized Company and interests in the proceeds of certain avoidance actions.”

BankruptcyData’s Plan Summary continues, “The Valuation Analysis estimates the Debtors’ total enterprise value at approximately $340 million to $465 million assuming an equal weighting of the various valuation methodologies employed, and the implied distributable reorganized equity value will range from approximately $245.1 million to $370.1 million.” BankruptcyData’s premium subscribers receive access to the full summary, which provides further details on corporate background, events leading to rue21’s May 15, 2017 Chapter 11 filing, recovery specifications and a comprehensive break-down of all claimant classes.

Read more rue21 bankruptcy news.

The post rue21 Bankruptcy Plan Summarized appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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