Rand Logisitics and six affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 18-10175. The Company, which provides bulk freight shipping services, is represented by David B. Stratton of Pepper Hamilton. Concurrent with the petition, the Company also filed a Joint Prepackaged Chapter 11 Plan of Reorganization and related Disclosure Statement.
According to the Disclosure Statement, “The Plan has been negotiated with and has the support of the agent and sole lender under the Second Lien Credit Agreement…, Lightship Capital LLC (‘Lightship’). This Disclosure Statement, the Plan and the accompanying documents have been extensively negotiated with the legal and financial advisors to Lightship. The Debtors are pleased to report that after extensive, good-faith and arm’s-length negotiations with Lightship, the Plan embodies a settlement among the Debtors and their key stakeholders on a consensual deleveraging transaction which provides for the implementation of a restructuring through an expedited chapter 11 process.”
In addition, “As explained in further detail in the Disclosure Statement, the key terms of the Plan include, without limitation, the following: payment in full, in the ordinary course of business, or reinstatement of Allowed General Unsecured Claims, including those held by trade vendors, suppliers and customers; payment in full, in Cash, of all Allowed Administrative Claims, Allowed Professional Fee Claims, Allowed Priority Tax Claims, Allowed Statutory Fee Claims, Allowed DIP Claims, Allowed Other Priority Claims and Allowed Other Secured Claims; payment in full, in Cash, of all Allowed First Lien Claims; conversion of Allowed Second Lien Claims into 100% of the New Common Stock, subject to dilution on account of the Equity Incentive Program, resulting in the elimination of approximately $92 million of debt; cancellation of the Existing Preferred Shares and the Existing Common Shares; entry into the Exit Facility Credit Agreement to ensure adequate liquidity at exit; and prompt emergence from the Chapter 11 Cases.”
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