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Aeropostale Bankruptcy Plan Effective

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Aeropostale’s Second Revised Third Amended Joint Plan of Reorganization became effective, and the Company emerged from Chapter 11 protection.

The U.S. Bankruptcy Court confirmed the Plan on March 30, 2018. BankruptcyData’s detailed Plan Summary notes,” The Plan provides for the sale of substantially all of the Company’s assets. Upon Confirmation, the Debtors will be authorized to take any and all actions necessary to consummate the Sale Transaction and the Asset Purchase Agreement. The Agreements between the Company and a consortium comprised of Authentic Brands Group, Simon Property Group, General Growth Properties, Hilco Merchant Resources and Gordon Brothers Retail Partners will sell substantially all of the Debtors assets for approximately $243.3 million. The proceeds from the Sale Transaction have been and will continue to be used to fund the ongoing wind-down costs of the Chapter 11 Cases and will be used to fund Distributions under the Plan. The wind-down of the Debtors’ estates has cost approximately $7 million to date.”

In addition, “The Debtors estimate that the ongoing wind-down costs of the Chapter 11 Cases will amount to approximately $2 million.” As previously reported, a joint venture among Authentic Brands Group, General Growth Properties, Simon Property Group, Hilco Merchant Resources and Gordon Brothers Retail Partners purchased substantially all of Aeropostale’s assets in 2016.

This teen and casual apparel/accessories retailer filed for Chapter 11 protection on May 4, 2016, listing $512 million in pre-petition assets.

Read more retail bankruptcy news.

The post Aeropostale Bankruptcy Plan Effective appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


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