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Walking Company Bankruptcy Plan Filed

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Walking Company Holdings filed with the U.S. Bankruptcy Court a First Amended Chapter 11 Plan of Reorganization and related Disclosure Statement.

According to the Disclosure Statement, “Pursuant to the Plan, all of the outstanding equity interests in the Parent will be extinguished. The Plan Sponsors will provide a $10.2 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 Stocic that may be issued to applicable Prepetition Subordinated. (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….’Consideration’ means Cash paid by the Plan Sponsors in the aggregate amount of $10,200,000 under the Plan Sponsors Investment Agreement which will be utilized to satisfy the Debtors’ obligations under the Plan. The Plan Sponsors will provide the Consideration in the following respective amounts: Fred Kayne – $5,000,000 (50%), Richard Kayne – $3,300,000 (33%), and Andrew Feshbach – $1,700,000 (17%); provided, however, if Fred Kayne declines to fund all or any part of his applicable share of the Consideration by the Effective Date, Richard Kayne will commit to fund the resulting shortfall.”

In addition, “The conditions to effectiveness of the Note Amendment will be that (1) the Bankruptcy Court confirms the Plan, (2) the Plan becomes effective, (3) the Investors will pay $10 million to the Company in return for the issuance of the Securities, as provided for in the Equity Term Sheet, (4) each of the Noteholders and the Company execute and deliver a Note Amendment with respect to such Noteholder’s Note and (5) the Senior Agent consents to the Note Amendment.”

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


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