| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers D > Headlines for Dean & DeLuca New York, Inc. > News item |
Dean & DeLuca gets approval of Chapter 11 plan of reorganization
By Sarah Lizee
Olympia, Wash., Nov. 25 – Dean & DeLuca New York, Inc.’s joint Chapter 11 plan of reorganization was approved Wednesday by the U.S. Bankruptcy Court for the Southern District of New York.
As previously reported, the debtors said in their disclosure statement that they intend to reduce their debt to about $11 million from roughly $311 million.
Upon exiting the Chapter 11 case, the reorganized debtors’ capital structure will consist of a $10 million exit facility with pre-petition lender Siam Commercial Bank PCL and a $750,000 five-year secured term loan.
Under the plan, proceeds of the exit facility, together with cash on hand and cash from operations, will be used to pay administrative claims, priority claims and the DIP facility claim in full and to make substantial distributions to trade creditors, landlords and other holders of general unsecured claims.
The reorganized debtors will issue new common shares of equity on a ratable basis to eligible unsecured creditors who elect to receive shares in lieu of cash distributions.
Immediately prior to the effective date, Pace Development and Pace Food will contribute to the parent, as a capital contribution, 50% of the Pace obligations.
The debtors will establish a cash reserve for payment of administrative and priority claims, with all remaining funds in that reserve made available for distribution ratably to holders of unsecured claims who do not elect to receive shares of the reorganized debtors.
Dean & DeLuca is a Wilmington, Del.-based specialty retailer. It filed bankruptcy on March 31, 2020 under Chapter 11 case number 20-10916.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.