Nine West Holdings filed with the U.S. Bankruptcy Court a Chapter 11 Plan of Reorganization and related Disclosure Statement.
According to the Disclosure Statement, “The restructuring transactions contemplated by the Restructuring Support Agreement and set forth in the Plan provide for a comprehensive restructuring based upon the sale of the Debtors’ footwear and handbag business (the ‘363 Sale’), the issuance of new equity in Reorganized Holdings (the ‘New Common Stock’), and the commitment of exit financing that will repay the Secured Term Loan Claims in full in cash (but with interest paid at the non-default rate). The Debtors’ extensively marketed their footwear and handbag business prior to the Petition Date, which efforts culminated in an asset purchase agreement (the ‘Stalking Horse APA’) providing a baseline $200 million purchase price for such assets subject to a competitive auction process, all as discussed more fully herein.”
In addition, “The proceeds of the 363 Sale will be used to pay down amounts outstanding to the Debtors’ secured debt, which pay down is a fundamental aspect of the Debtors’ restructuring and Plan. At bottom, the Plan will eliminate more than $900 million of the Debtors’ prepetition funded debt and allow the Debtors to reorganize around their core jeans wear, women’s apparel, jewelry, and Anne Klein licensing businesses. The Debtors intend to move swiftly through Chapter 11. Indeed, the Restructuring Support Agreement requires the Debtors to enter into committed exit financing no later than June 15, 2018, confirm the Plan by no later than August 20, 2018, and exit chapter 11 protection by no later than September 4, 2018. The Debtors’ Stalking Horse APA requires the closing of the 363 Sale to occur on or before July 15, 2018. The Debtors believe this timeline is appropriate and necessary to effectuate a Plan that is supported by over 78 percent of their secured term loan lenders and over 89 percent of their unsecured term loan lenders – which support is demonstrated by the Restructuring Support Agreement and $297.5 million in post-petition debtor-in-possession financing provided by the majority of the Debtors’ prepetition secured lenders (including $50 million of new money loans) – and maximizes stakeholder recoveries.”
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