Medley hearing on approval of disclosure statement reset for May 3

By Sarah Lizee

Olympia, Wash., April 13 – Medley LLC’s hearing on approval of the disclosure statement for its pre-packaged Chapter 11 plan has been rescheduled to May 3 from April 22, according to a notice filed Monday with the U.S. Bankruptcy Court for the District of Delaware.

Under the plan, each holder of a secured claim will receive, at the option of the debtor, payment in full in cash, the collateral securing their claim or reinstatement of their claim, as previously reported.

Holders of other priority claims will receive treatment in a manner consistent with section 1129(a)(9) of the Bankruptcy Code.

If a holder of a notes claim votes to accept the plan, the holder will receive 0.6 of a share of newly issued class A common stock of Medley for each $25 principal amount of 7¼% senior notes due 2024 and/or 6 7/8% senior notes due 2026 that are held. If the holder does not vote on the plan, the holder will receive 0.45 of a share of new common stock for each $25 principal amount of the notes held. If the holder elects to opt out of the third-party release or vote to reject the plan, the holder will receive the lesser of 0.134 of a share of new common stock for each $25 principal amount of notes held, or a pro rata share of the $100,000 rejecting noteholder pool.

The holder of the strategic claim, Strategic Capital Advisory Services, LLC, will receive 218,182 shares of new common stock, $350,000 in cash and a secured promissory note, which provides for 10 consecutive quarterly payments of $225,000 in cash.

Holders of general unsecured claims will receive, at the option of the debtor, the lesser of the amount of its claim in cash, or its pro rata share of the $100,000 general unsecured claims pool, or reinstatement.

Intercompany claims will be, at the option of the debtor, either reinstated or canceled, released and extinguished without any distribution.

Interests will be retained.

New York-based Medley is an alternative asset management firm offering yield solutions to retail and institutional investors. The company filed bankruptcy on March 7 under Chapter 11 case number 21-10526.

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