GBG USA exclusivity extended as committee, lender talks continue

By Sarah Lizee

Olympia, Wash., Nov. 29 – GBG USA Inc. secured an extension of its exclusive periods to file and solicit votes on a Chapter 11 plan, according to an order filed Monday with the U.S. Bankruptcy Court for the Southern District of New York.

Specifically, the court extended the plan filing period through Jan. 25 and the solicitation period through March 28.

The company said in its motion that the debtors have made substantial progress in their cases by selling substantially all of their assets and continuing to work on additional asset sales.

In addition, the debtors have been working with the official committee of unsecured creditors and their pre-petition secured lenders to formulate a consensual Chapter 11 plan.

The company said the debtors have exchanged several drafts of a term sheet with the committee and lenders and intend to file a proposed plan and related disclosure statement within the requested extension period.

“Despite this progress, the debtors’ current exclusive periods will expire before getting a consensual plan on file,” the company said in its motion.

New York-based GBG USA is primarily engaged in operating the wholesale and direct-to-consumer footwear and apparel business in North America. The company filed bankruptcy on July 29 under Chapter 11 case number 21-11369.

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