BankruptcyData’s detailed analysis and summary of 4Licensing’s Combined Chapter 11 Plan of Reorganization and Disclosure Statement, dated November 4, 2016, is now available. The U.S. Bankruptcy Court confirmed the Plan on January 20, 2017; however, an effective date has not yet been issued.
BankruptcyData notes, “The Plan is premised on the Debtor issuing New Common Stock in exchange for Allowed Secured Claims and cash, and the Buyer (Mr. Frohlich) will 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. 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. Mr. Frohlich is the founder of Prescott Group Capital Management, LLC, an investment company for high net worth investors, and has served as its managing partner since 1993.”
BankruptcyData’s Plan Summary continues, “The Liquidation Analysis for Reorganized 4Licensing Corporation estimates the Net Proceeds Available to Creditors to be between $17,143 and $525,000. The recovery rate to the Rudd Secured Debt is estimated to be between 17% and 100%. The recovery rate to the Prescott Secured Debt is estimated to be between 0% and 23%.” BankruptcyData subscribers receive access to the full summary, which provides further details on corporate background, events leading to 4Licensing’s September 21, 2016 Chapter 11 filing, recovery specifications and a comprehensive break-down of all claimant classes.
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