LRI Holdings filed with the U.S. Bankruptcy Court a Chapter 11 Plan of Reorganization and related Disclosure Statement.
According to the Disclosure Statement, Class 1, holders of other priority claims shall be paid full in cash; holders of Class 2, other secured claims shall receive either (i) cash in the full amount or (ii) net proceeds of the sale or disposition of collateral securing such allowed other secured claim and holders of Class 3, revolving facility lender claims shall receive a pro rata share of the exit revolving facility (by having any revolving facility lender claims for outstanding principal deemed outstanding under the exit revolving facility on a dollar-for-dollar basis and all letters of credit issued under the credit agreement deemed outstanding under the exit revolving facility).
The Plan further provides that holders of Class 4, GSO note claims and Kelso Note claims shall receive a pro rata share of the new stock (subject to dilution for the CRO fee equity award and management incentive plan); holders of Class 5, unexchanged note claims shall receive the following: (i) subclass 5(a) – each holder of unexchanged notes that, in the aggregate, holds equal to or in excess of $50,000 in principal amount of unexchanged notes shall receive a pro rata share of the new stock (subject to dilution for the CRO fee equity award and management incentive plan) and (ii) subclass 5(b) – Each holder of unexchanged notes that, in the aggregate, holds less than $50,000 in principal amount of unexchanged notes shall receive its cashout payment; holders of Class 6, general unsecured claims shall receive the following: (i) if Class 6 votes in favor of the Plan, its pro rata share of the general unsecured claim cash pool and (ii)i Class 6 rejects the Plan, no distribution on account of its allowed general unsecured claim; holders of Class 7, intercompany claims shall be reinstated, cancelled or compromised as determined by the Debtors with the consent of the required supporting noteholders; holders of Class 8, subordinated claims and holders Class 9, existing equity interests shall receive shall neither receive any distributions nor retain any property under the Plan; holders of Class 10, intercompany interest shall be cancelled or reinstated as determined by the Debtors with the consent of the required supporting noteholders.
The Disclosure Statement states, “The amount of the New Stock to be issued pursuant to the Plan shall be disclosed in the Plan Supplement.” The Court scheduled a September 22, 2016 hearing to consider the Disclosure Statement.
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