Sequential Brands plan accepted by all term B secured claimholders

By Sarah Lizee

Olympia, Wash., Feb. 18 – Sequential Brands Group, Inc.’s Chapter 11 plan of liquidation was accepted by all nine voting holders of $30.49 million of term B secured claims, according to a tabulation summary filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

The plan confirmation hearing is scheduled for Feb. 22.

As previously reported, the company has received court approval to sell all of its brands.

Gainline Galaxy Holdings LLC’s winning bid for the active division includes $55 million in cash, issuance to the term B lenders of series A units of Gainline in an amount equal to 11.3% of the total outstanding series A and series B units of Gainline at closing, with those units to be valued at $50 million, issuance of debt of the buyer or its subsidiaries in an amount equal to $227.5 million, and assumption of some liabilities.

Centric Brands LLC’s winning bid for the Joe’s Jeans brand includes $48.5 million and the assumption of some liabilities.

With You Inc.’s winning bid for the unit interests in With You LLC includes $65 million in cash.

The plan provides for the distribution on the effective date of cash to the holders of allowed administrative claims and professional fee claims in an amount equal to the allowed amount of those claims.

Allowed priority tax claims will be unimpaired.

Holders of term B secured claims will receive their pro rata share of the liquidating trust interests, which will entitle holders to distributions from the liquidating trust.

Holders of other secured claims will be paid in full in cash, receive the collateral securing their claims, or have their claims reinstated.

Holders of other priority claims will receive payment in full in cash.

Holders of general unsecured claims and section 510 claims will have their claims canceled with no distribution.

Intercompany claims and interests will be reinstated or canceled.

Existing parent equity interests will be canceled and holders will not receive or retain any property under the plan.

The plan drew an objection from Regions 3 and 9 U.S. trustee Andrew R. Vara. He said the plan should not be confirmed because of the plan’s third-party releases.

New York-based Sequential Brands owns, manages and licenses consumer brands across multiple industries. The company filed bankruptcy on Aug. 31 under Chapter 11 case number 21-11194.

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