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Walking Company Bankruptcy Objection Filed

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Walking Company Holdings’ official committee of unsecured creditors filed with the U.S. Bankruptcy Court an objection to Debtors’ financing motion.

The objection asserts, “While the Debtors champion the plan as a significant achievement that has the support of its major stakeholders, the Debtors neglect to mention that unsecured creditors did not have a seat at the negotiating table. Whereas the Debtors’ lenders and equity holders will maintain their stakes in the reorganized Debtors, unsecured creditors will receive an un-quantified fractional recovery on their prepetition claims. Moreover, similar to the Debtors’ 2009 restructuring, such creditors are being asked to effectively fund the Debtors’ reorganization efforts through more than $8 million of annual concessions that will serve to benefit the Debtors’ insiders in connection with both their debt and equity positions.”

In addition, “The Committee intends to address these concerns separately and, to the extent of any meaningful delay, may request this Court adjourn the April 18 disclosure statement hearing to permit the Committee to conduct formal discovery to satisfy its statutory obligations. At this early stage of these cases, however, the Committee’s primary goal is to safeguard the rights of creditors and ensure the Committee has sufficient time and resources to fulfill its statutory mandate through the expedited process proposed by the Debtors. Since its formation on March 20, the Committee has diligently worked to begin addressing its concerns, including attempts to work with the Debtors and Senior Lenders to ensure the terms of the proposed DIP Facility are fair, will provide sufficient funding for the chapter 11 process, and will safeguard the rights of unsecured creditors. To date, the parties have been unable to resolve a number of critical issues.”

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The post Walking Company Bankruptcy Objection Filed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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