WorldVentures files restructuring term sheet with Verona as sponsor

By Sarah Lizee

Olympia, Wash., June 3 – Spherature Investments LLC, which does business as WorldVentures, is seeking court approval of a restructuring term sheet with proposed plan sponsor Verona International Holdings, Inc., according to a motion filed Wednesday with the U.S. Bankruptcy Court for the Eastern District of Texas.

The company said it believes that the proposal from Verona maximizes the value of the debtors’ assets for the benefit of the estates and their creditors and is the highest and best offer received through the debtors’ marketing process.

According to the term sheet, the plan sponsor will provide the sum of the cure costs and up to $82.5 million, which includes $5 million in cash, $5.5 million in assumed secured debt, $16 million in earn-out/royalty payments, up to $45 million in aggregate unpaid pre-petition sales commissions and up to $11 million in assumed deferred revenue.

Verona will deposit $250,000 with Wilmington Trust, NA as escrow agent. The debtors will retain the deposit in the event that Verona terminates the term sheet.

The plan sponsor will acquire substantially all of the debtors’ assets other than some excluded assets.

Verona will be entitled to a $350,000 breakup fee and a $150,000 expense reimbursement.

The company said that through the plan sponsor’s proposal, the debtors anticipate being able to provide a meaningful recovery to allowed unsecured claims.

Plano, Tex.-based WorldVentures sells travel and lifestyle community memberships. The company filed bankruptcy on Dec. 21 under Chapter 11 case number 20-42492.

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