The U.S. Bankruptcy Court issued an order approving Global Brokerage’s payment of restructuring expenses pursuant to the restructuring support agreement (RSA).
The payment notice was filed as a modification to the Court’s January 22, 2018 confirmation order for the Company’s Prepackaged Plan of Reorganization.
As previously reported, “Pursuant to the Support Agreement Assumption Order and the Confirmation Order, the Reorganized Debtor will assume all obligations of the Debtor under the Restructuring Support Agreement, including the Debtor’s obligation to pay fees and expenses under (i) that certain letter agreement dated May 18, 2017 by and among the Debtor and Centerview Partners LLC and (ii) that certain letter agreement dated June 5, 2017 by and among the Debtor and Vinson & Elkins LLP. The Debtor executed the Fee Letters as part of its efforts to refinance or restructure its $172.5 million aggregate principal amount of Existing Notes. Under the Fee Letters, the Debtor agreed to pay the fees and expenses of the advisors to a group of holders of the Existing Notes (the ‘Ad Hoc Group’), as is common in refinancing’s and restructurings of similar magnitude.”
In addition, “The Centerview Effective Date Payment represents: (i) the $1,200,000 Transaction Fee, which is due on or prior to the Effective Date as a result of the consummation of the restructuring under the Plan, less (ii) a credit of $338,333 on account of prepetition Monthly Advisory Fees earned prior to the Petition Date, plus (iii) a pro rata monthly fee in the amount of $66,667 for the period from January 18, 2018 through the anticipated Effective Date of February 6, 2018….The V&E Effective Date Payment represents (i) $271,383.31 in unpaid fees and expenses of V&E accrued prior to and during the Debtor’s Chapter 11 Case, and (ii) V&E’s good faith estimate of $120,000 for fees and expenses that V&E will incur between the date of the filing of this notice and the Effective Date, pursuant to and in accordance with the V&E Fee Letter. In addition to the V&E Effective Date Payment, the Debtor has previously paid $1,357,518.88 to V&E pursuant to the V&E Fee Letter.”
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