The U.S. Bankruptcy Court issued an order approving Modular Space Holdings’ restructuring support agreement (RSA).
As previously reported, “By this Motion, the Debtors seek authority to assume (i) the RSA negotiated by the Debtors, the ABL Lenders comprising holders of 100% in the aggregate outstanding amount of the ABL Facility, certain of the Debtors’ Noteholders comprising holders of approximately 94% of the outstanding Secured Notes (the ‘Consenting Noteholders’) and certain investment funds owned or managed by Calera Capital Advisors (including Calera Capital Partners II, Calera VI, Calera XI, Calera Capital Offshore Partners II, Calera Capital Partners III, and any other investment funds owned or managed by Calera Capital Advisors that hold common stock of Holdings, ‘Calera’), the holder of approximately 91.9% of equity interests in Holdings (collectively, the ‘RSA Parties’), pursuant to which the RSA Parties have agreed to support the Plan.”
In addition, “Moreover, prompt assumption of the RSA is essential for the preservation of the consensual deal through which the Debtors intend to effectuate a reorganization….If confirmed, the Plan will implement the agreed restructuring of the Debtors’ obligations to the Noteholders, providing each Noteholder with a pro rata share of 9,122,999 shares of equity of a reorganized entity, to be determined in accordance with the Plan, which will own, directly or indirectly, 100% of the equity interests in Modular Space Corporation as of the Effective Date (the ‘Reorganized Entity’), along with the ability to participate in a rights offering of $90 million in the Reorganized Entity (the ‘Rights Offering’) pursuant to which the Noteholders may subscribe to purchase their pro rata share of an additional 18,317,500 shares of equity in the Reorganized Entity.”
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