August 2, 2018 – The Court hearing the Gibson Brands case approved the Disclosure Statement related to the Company’s Third Amended Joint Plan of Reorganization [Docket No. 516] and concurrently set a September 27, 2018 date for the Plan confirmation hearing (with objections to be filed by September 21, 2018) [Docket No. 533]. As previously reported [Docket No. 518], “Jefferies has concluded that the Enterprise Value of the Reorganized Debtors, as of an assumed effective date of September 30, 2018 (the ‘Assumed Effective Date’), will range from approximately $360 million to approximately $430 million, with a midpoint of approximately $395 million. The Enterprise Value has been adjusted for approximately $20 million of net debt plus assumed after-tax estimated proceeds of approximately $7.3 million from the planned post-emergence sale of certain assets held-for-sale to arrive at an equity value (the ‘Equity Value’) that ranges from approximately $348 million to approximately $418 million with a midpoint of approximately $383 million. The Debtors separately assumed the value of the Debtors’ 54.6% equity interest in TEAC to be approximately $60 million based on the volume weighted average price (‘VWAP’) over the prior 90 trading days ended July 30, 2018. The range of Equity Values, together with the assumed value of the equity interest in TEAC represents the distributable value (the ‘Distributable Value’) of the Reorganized Debtors. The Distributable Value is assumed to range from approximately $408 million to approximately $478 million, with a midpoint of approximately $443 million….The Plan provides that upon emergence from these Chapter 11 Cases, the Debtors will satisfy the $135 million to $139 million of DIP Facility Claims that may be outstanding under the DIP Facility as of the Effective Date through a conversion to equity or ‘takeback paper’.” The following is a summary of classification and treatment of classified claims and equity interests: (1) Other Priority Claims – Unimpaired – Deemed to Accept; (2) Other Secured Claims – Unimpaired – Deemed to Accept; (3) ABL Revolver Claims – Unimpaired – Deemed to Accept; (4) Domestic Term Loan Claims – Unimpaired – Deemed to Accept; (5) Allowed Prepetition Secured Notes Claims – Impaired – Entitled to Vote; (6) General Unsecured Claims – (Other than Class 7, 8 and 9 Claims) – Impaired – Entitled to Vote; (7) General Unsecured Claims Against Gibson Holdings – Impaired – Entitled to Vote; (8) Convenience Class Claims – Impaired – Entitled to Vote; (9) Convenience Class Claims – Impaired/Unimpaired – Deemed to Accept/ Deemed to Reject; (10) Equity Interests in Gibson – Impaired – Deemed to Reject; (11) Equity Interests in Subsidiaries (Other than Excluded Debtor Subsidiaries) – Unimpaired – Deemed to Accept; and (12) Equity Interests in Excluded Debtor Subsidiaries – Impaired – Deemed to Reject.
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