Tuesday Morning files plan of reorganization, disclosure statement

By Sarah Lizee

Olympia, Wash., Sept. 24 – Tuesday Morning Corp. filed its plan of reorganization and related disclosure statement on Wednesday, according to an 8-K filing with the Securities and Exchange Commission.

The debtors also filed an expedited motion to approve sale and bidding procedures for its assets.

Distributions under the plan will be made with cash on hand, including cash from operations, a new $120 million asset-based credit facility, a new $25 million real estate credit facility, an issue of general unsecured bonds and reinstatement of Tuesday Morning interests, as applicable.

The new ABL facility will bear interest at Libor plus 300 basis points with an unused line fee of 50 bps.

Holders of other priority unsecured claims will receive payment in full in cash.

Holders of other secured claims and secured tax claims will receive payment in full in cash or the collateral securing their claims.

Holders of existing first-lien credit facility claims will receive payment in full in cash, plus interest, to be paid in three equal installments.

Holders of general unsecured claims will receive its pro rata share of the general unsecured cash fund and the general unsecured bonds.

Holders of convenience claims will receive the convenience claim distribution.

Intercompany claims will be reinstated or cancelled and released without any distribution, at the option of the debtors.

Tuesday Morning interests will be reinstated, subject to dilution.

Intercompany interests will receive no distribution and will be reinstated for administrative purposes only.

A hearing on approval of the disclosure statement is scheduled for Oct. 29.

A hearing on confirmation of the plan is set for Dec. 15.

Tuesday Morning is a discount, off-price retailer based in Dallas. The company filed bankruptcy on May 27 in the U.S. Bankruptcy Court for the Northern District of Texas under Chapter 11 case number 20-31476.

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