Soft Surroundings gets conditional approval of disclosure statement

By Sarah Lizee

Olympia, Wash., Oct. 2 – Soft Surroundings Holdings, LLC received conditional approval of the disclosure statement for its Chapter 11 plan from the U.S. Bankruptcy Court for the Southern District of Texas on Monday, according to a minute entry.

The plan confirmation hearing is scheduled for Nov. 3.

As previously reported, the company said it has entered into a restructuring support agreement through which Coldwater Creek, under the ownership of Newtimes Group, will continue ongoing direct-to-consumer and e-commerce operations.

Under the plan, other secured claims and other priority claims are unimpaired.

Holders of first-lien secured claims will receive their pro rata share of 95% of distributable value, provided that holders will not receive more than 97.5% of the allowed amount of their claims. Holders will also incur the obligation to fund the administrative expense claim backstop amount. This class is entitled to vote on the plan.

Holders of general unsecured claims, section 510(b) claims and interests will receive nothing. These classes are not entitled to vote and are deemed to reject the plan.

The St. Louis-based retailer of women's apparel, home, shoe and accessories merchandise filed Chapter 11 bankruptcy on Sept. 10 under case number 23-90769.

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