Walking Company Holdings filed for Chapter 11 protection with the U.S. Bankruptcy Court in the District of Delaware, lead case number 18-10474.
The Company, which engages in the retail sale of footwear and accessories, is represented by James E. O’Neill of Pachulski Stang Ziehl & Jones. Concurrent with its petition, the Company also filed a Joint Plan of Reorganization and related Disclosure Statement. Pursuant to the Plan, all of the outstanding equity interests in the Parent will be extinguished. The Plan Sponsors will provide a $10 million Consideration in Cash on the Effective Date and will be issued all of the New Common Stock of the Reorganized Parent, subject to dilution resulting from New Common Stock that may be issued to applicable .Prepetition Subordinated Noteholders upon their exercise of the New Warrants. (The New Warrants may be exercised for shares of New Common Stock initially representing in the aggregate 7.5% of the New Common Stock.) On and after the Effective Date, the Reorganized Subsidiaries will continue to be wholly-owned subsidiaries of the Reorganized Parent. The Reorganized Debtors will continue to operate post-confirmation in the ordinary course of business, using cash generated by the business and proceeds from a $57.25 million secured Exit Facility. The Debtors have secured $70 million in equity commitments from their largest shareholders and $50 million in financing to both support the Debtors’ operations and provide “exit” financing. The Company emerged from a previous Chapter 11 filing in April 2010.
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