Aeropostale filed with the U.S. Bankruptcy Court an Amended 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’ pursuant to the terms of one or more asset purchase agreements submitted at or prior to the Bid Deadline and subsequently determined by the Debtors pursuant to the Bid Procedures to be the highest or otherwise best offer for such assets, subject to Bankruptcy Court approval of the Debtors’ entry into an alternative transaction with a potential plan sponsor in connection with the Auction. The Debtors will be considering any and all types of bids including going concern and GOB or liquidation offers.”
The Disclosure Statement continues, “The proceeds from the Sale Transaction will be used in the first instance to satisfy all DIP Claims, consistent with the Final DIP Order, and then, to the extent available, to fund the ongoing wind-down costs of the Chapter 11 Cases and Distributions under the Plan….The Debtors estimate that the current value of their unencumbered assets is approximately $11 million, although it could be higher depending on the recoveries from any Causes of Action, including Avoidance Actions. The Debtors estimate that the ongoing wind-down costs of the Chapter 11 Cases will range from $10-$25 million depending on the exact nature of the Sale Transaction.”
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