October 12, 2018 – Point.360 filed with the Court a First Amended Chapter 11 Plan [Docket No. 368] and a related Disclosure Statement [Docket No. 369]. The Disclosure Statement attaches the following exhibits:
- Exhibit 1: Claims listings by plan class
- Exhibit 2: Cash flow projections for the term of the Plan
- Exhibit 3: Prepetition balance sheets and statements of operations
- Exhibit 4: Liquidation analysis, including Debtor’s Schedule A/B
- Exhibit 5: Statement of Financial Affairs Part 2(3), (4) re prepetition transfers
- Exhibit 6: Treatment of executory contracts and leases
- Exhibit 7: Surplus Property, Plant & Equipment (“PPE”) inventory valuation
- Exhibit 8: Declaration of Haig S. Bagerdjian in support of this Disclosure Statement.
According to the Disclosure Statement, “At or before the Effective Date, Debtor shall assign standing to prosecute the claims set forth in the Complaint in adversary proceeding number 2:18-ap-01141 WB and any other claims against Medley (‘Medley Litigation’) to the Creditors’ Committee and the Committee may settle, compromise, dismiss or otherwise dispose of such claims subject to Bankruptcy Court approval. Any net proceeds recovered from the Medley Litigation shall be paid first to all general unsecured creditors pro rata until paid in full and then to former allowed equity security holders pro rata according to their percentage stock ownership in the Debtor as of the Effective Date. The Committee shall remain in effect pending the resolution of any Medley Litigation.
Within six (6) months of the Effective Date, Debtor shall have completed the sale of surplus MVF assets listed in Exhibit 7 to the Disclosure Statement pursuant to the terms of the Medley Purchase Agreement: ‘Following the Closing, Buyer shall have the right to sell any Purchased Asset which Buyer determines, in its sole discretion, is not needed for continuing operations relating to the Purchased Assets, and Buyer shall retain all consideration received by Buyer in connection with any such sale.’ Net proceeds received by Debtor from such sale(s) shall be distribution pro rata to Class 6 General Unsecured Creditors.
On the Effective Date, Debtor shall cancel all outstanding equity securities, including stock, options and warrants, and complete such regulatory requirements to delist Debtor’s securities from the public market. Debtor shall authorize and issue 5,000,000 shares of common stock to HWAY, LLC in full satisfaction of Debtor’s $803,923.13 cure obligation for assumption of the HWAY, LLC lease. Mr. Bagerdjian holds a 99% membership interest in HWAY. Any distribution made by the Debtor that remains unclaimed and outstanding for more than ninety (90) days after issuance shall be cancelled, and any such property shall revest in the Debtor.”
The Court scheduled a November 8, 2018 hearing to consider the Disclosure Statement.
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