BankruptcyData’s detailed analysis and summary of Roust’s Amended and Restated Joint Prepackaged Plan of Reorganization, dated December 30, 2016, is now available. The U.S. Bankruptcy Court confirmed the Plan on January 10, 2017; however, an effective date has not yet been issued.
BankruptcyData notes, “The Joint Prepackaged Plan of Reorganization and the Restructuring Support Agreement will strengthen Roust Corporation’s capitalization by over $500 million and deleverage its balance sheet by at least $462 million. In particular, the transactions under the Plan of Reorganization will result in the reduction of Roust Corporation’s existing funded debt by approximately $462 million, the receipt by Roust Corporation of funding of $55 million in new equity capital and the contribution of strategic assets, namely RSV and related intellectual property, to Roust Corporation by RTL and certain subsidiaries of it.”
BankruptcyData’s Plan Summary continues, “The Valuation Analysis estimates that the estimated range of reorganization value of Reorganized Roust is assumed to be $1,215 million to $1,500 million (with a mid- point estimate of approximately $1,358 million) with an assumed valuation date of January 1, 2017. The Valuation Analysis estimates that the estimated the range of equity value for Reorganized Roust to be between $525 million to $810 million (with a mid- point estimate of approximately $668 million). The transaction contemplated by the Plan is based on an implied equity value of Reorganized Roust of $649.4 million.” BankruptcyData subscribers receive access to the full summary, which provides further details on corporate background, events leading to Roust’s December 30, 2016 Chapter 11 filing, recovery specifications and a comprehensive break-down of all claimant classes.
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