Aspect Software Parent filed with the U.S. Bankruptcy Court a Joint Chapter 11 Plan of Reorganization and related Disclosure Statement, which notes, “The Plan contemplates the following recoveries to Holders of First Lien Revolver Claims and Holders of First Lien Term Loan Claims: With the consent of the Backstop Parties and after becoming party to the Plan Support Agreement, certain Holders of First Lien Revolver Claims can elect to equitize a specified portion of their claims and receive their pro rata share of 100% of the equity in reorganized Aspect, the ‘New Equity’, subject to certain dilutions.”
The Disclosure Statement continues, “Holders of First Lien Revolver Claims can opt to participate in the new, $30 million revolving credit facility, the ‘New First Lien Revolving Credit Facility’ and receive payment in full in Cash of their Allowed First Lien Revolver Claim (such Holders, the ‘Participating Revolving Lenders’. Holders can opt to not participate in the New Revolving Credit Facility and receive their Pro Rata share of the amended and restated senior secured first lien term loan, the ‘Exit First Lien Term Loan’ plus certain cash amounts associated with the Rights Offering and a portion of the Exit First Lien Term Loan consent fee in an amount equal to 1.5% of the aggregate principal amount of First Lien Term Loan Claims outstanding as of the Petition Date excluding any First Lien Term Loan Claims that are included in the First Lien Equitization Amount and for which a First Lien Equitization Election has been made, the ‘First Lien Non-Equitization Consideration’. The Backstop Parties with respect to a portion of their First Lien Term Loan Claims have committed to equitize $60 million thereof in exchange for the First Lien Equitization Consideration.”
The Court scheduled an April 25, 2016 hearing to consider the Disclosure Statement, with objections due by April 21, 2016. Read more bankruptcy news.
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