Aeropostale filed with the U.S. Bankruptcy Court a Chapter 11 Plan of Reorganization and related Disclosure Statement.
According to the Disclosure Statement, “The Plan described in this Disclosure Statement provides for the sale of substantially all of the Debtors’ assets (the ‘Sale Transaction’) pursuant to the terms of one or more asset purchase agreements….The proceeds from the Sale Transaction will be used, to the extent available, to fund the ongoing wind-down costs of the Chapter 11 Cases and Distributions under the Plan.”
The Disclosure Statement continues, “The Debtors retain the right, in their sole discretion and subject only to their business judgment to enter into any alternative restructuring transaction that is inconsistent with a Sale Transaction, including (i) a merger, consolidation, business combination, recapitalization, or refinancing of any of the Debtors (in one or a series of related transactions) on terms other than as set forth in the Asset Purchase Agreement, (ii) the issuance, sale, transfer, exchange, or other disposition by any of the Debtors of any equity interests, or all or substantially all of its assets, on terms other than as set forth in the Asset Purchase Agreement, or (iii) a plan of reorganization that does not contemplate a Sale Transaction. Under the Plan, Aeropostale shall serve as Plan Administrator of each of the Debtors and shall, among other things, pursue Causes of Action and facilitate Distributions under the Plan until the Chapter 11 Cases of all of the Debtors have been fully administered.”
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