Perfumania Holdings’ Modified Prepackaged Joint Chapter 11 Plan of Reorganization became effective, and the Company emerged from Chapter 11 protection. The Court confirmed the plan on October 6, 2017.
According to BankruptcyData’s Plan Summary, “The Plan provides for a comprehensive reorganization of the Debtors that will leave all creditors unimpaired, pay fixed, undisputed and liquidated claims in full in cash and reinstate contingent, disputed or unliquidated claims, allow the Debtors to emerge from chapter 11 expeditiously and efficiently, and restructure the Debtors’ lease obligations and deleverage the capital structure of the Debtors so that the reorganized Debtors are financially stable and can fulfill their ongoing business relationships with all of its constituencies, including customers, vendors, suppliers, and employees. Interests in Perfumania will be cancelled pursuant to the Plan and Holders of Interests in Perfumania will receive no property under the Plan on account of such Interests. Holders of Interests in Perfumania (other than NewHoldCo), however, will have the opportunity to receive $2.00 in cash per share consideration.”
In addition, “This per share consideration will be funded by NewHoldCo, which will provide a new equity infusion to Perfumania in Cash in the amount of $14,263,460. In exchange for the NewHoldCo Equity Investment, NewHoldCo will receive 100% of the New Perfumania Common Stock issued under the Plan.”
A corporate release notes that Perfumania Holdings will continue in business as a privately-held company with a reduced retail store portfolio. Shareholders will be given opportunity to receive $2.00 per share in exchange for completing a shareholder release form.
This specialty fragrance retailer filed for Chapter 11 protection on August 26, 2017, listing $311 million in pre-petition assets. Visit BankruptcyData for the full Plan Summary.
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