Shopko disclosure statement approved; confirmation hearing April 2

By Caroline Salls

Pittsburgh, March 4 – Shopko obtained court approval of the disclosure statement for its second amended plan of reorganization, according to an order filed Friday with the U.S. Bankruptcy Court for the District of Nebraska.

The plan confirmation hearing is scheduled for April 2.

As previously reported, the plan includes a toggle feature under which Shopko may determine whether to complete an equitization restructuring or an asset sale restructuring.

New Shopko interests will be issued under the plan. Existing interests will be canceled.

The company’s pre-bankruptcy ABL obligations were rolled into debtor-in-possession financing obligations.

Lenders will convert their claims into exit financing commitments, or Shopko will enter into a new credit facility sufficient to pay lender claims in full and provide incremental liquidity.

General unsecured creditors will receive either 100% of the new Shopko interests or a share of an equitization reserve.

The assets in reorganized Shopko will be vested for the purpose of liquidating the estates.

Shopko is a Green Bay, Wis., operator of general merchandise stores throughout the Central, Western and Pacific Northwest regions of the United States. The company is a $3 billion retailer that operates more than 360 stores in 26 states. The company filed bankruptcy on Jan. 16 under Chapter 11 case number is 19-80064.

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