Quantcast
Channel: Daily Bankrupt Company Updates | Bankrupt Company News
Viewing all articles
Browse latest Browse all 4593

4Licensing Disclosure Statement Conditionally Approved

0
0

The U.S. Bankruptcy Court issued an order conditionally approving 4Licensing’s Disclosure Statement related to the Company’s Combined Chapter 11 Plan of Reorganization.

As previously reported, “Debtor shall issue New Common Stock in exchange for Allowed Secured Claims and cash. Buyer shall purchase 38,327 shares of the New Common Stock for the total purchase price of $462,673 that represents 38.3% of the New Common Stock. Debtor shall issue 58,000 shares of New Common Stock to Prescott in payment for that portion of the Allowed Prescott Secured Claim represented by Prescott Note 1 and such shares shall represent 58% of the New Common Stock.”

Court-filed documents continue, “Debtor shall grant an option to Rudd whereby Rudd can acquire 3,673 shares of New Common Stock in satisfaction of the Allowed Rudd Secured Claim and such shares shall represent 3.7% of the New Common Stock. In the event that Rudd elects to receive cash in satisfaction of its Allowed Class 3 Claim, Buyer will purchase the shares of New Common Stock offered to Rudd (3,673 shares) for the additional price of $44,344. Buyer and Prescott will be the sole shareholders of Reorganized Debtor on the Effective Date unless Rudd shall have exercised its option to purchase New Common Stock. Debtor is presently managed by Phil Frohlich as its sole director, president, and the person designated to discharge the duties of the debtor in possession in this bankruptcy case.”

In addition, “Mr. Frohlich’s purchase of New Common Stock for cash will be the source of payments to holders of Class 1, 2, 3 and 4 under the Plan.” The Court scheduled a December 15, 2016 hearing to consider the Plan, with objections due by December 12, 2016.

Read more bankruptcy news.

The post 4Licensing Disclosure Statement Conditionally Approved appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.


Viewing all articles
Browse latest Browse all 4593

Latest Images

Trending Articles





Latest Images