Peekay Boutiques filed with the U.S. Bankruptcy Court a Joint Plan and related Disclosure Statement.
According to the Disclosure Statement, “The Plan provides for the liquidation and sale of substantially all of the Debtor’s Assets to the Buyer, subject in all respects to high and better offers pursuant to the Bid Procedures, under Bankruptcy Code section 363 pursuant to the Asset Purchase Agreement, dated August 9, 2017 between the Debtors and TLA Acquisition, Inc., as may be amended, modified or supplemented from time to time (the ‘Asset Purchase Agreement’). Pursuant to Bankruptcy Code sections 363 and 1123 and Bankruptcy Rule 9019, the provisions of the Plan shall also constitute a good faith compromise of the claims and Causes of Action asserted or that could have been asserted among the Creditors’ Committee, Debtors, Term A Lenders, and Buyer.”
In addition, “After extensive negotiations among the Debtors, the Creditors’ Committee, Term A Lenders and Buyer, the parties reached a global settlement which resolves all outstanding issues amongst the parties (the ‘Global Settlement’). If the Plan is confirmed by the Bankruptcy Court and consummated, except to the extent that a holder of an Allowed Administrative Claim and the Debtors agree to less favorable treatment with respect to such holder, each holder of an Allowed Administrative Claim shall be paid in full in Cash on the Effective Date. Further, the Plan provides that, the Debtors shall pay, in full in Cash, any fees due and owing to the U.S. Trustee as of the Effective Date.”
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