BCBG Max Azria files plan of reorganization and bid procedures motion

By Caroline Salls

Pittsburgh, March 2 – BCBG Max Azria Global Holdings, LLC filed its plan of reorganization and requested court approval of the bid procedures for the proposed sale of its assets or other plan transaction, according to a motion filed with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, the company is in negotiations with some of its term loan lenders regarding a Chapter 11 plan process, which includes a related marketing process.

The plan’s toggle feature calls for BCBG to complete its restructuring through either the sale of its assets to a third party or a debt-for-equity conversion on terms to be negotiated.

The plan provides for payment in full in cash of debtor-in-possession financing claims, term loan tranche A claims and ABL claims.

Other secured claims will be reinstated, or holders will receive the collateral securing the claim or be paid in full in cash.

Treatment of the holders of new term loan tranche A claims and term loan tranche B claims will depend on the nature of the sale or plan transaction.

Holders of critical trade claims will receive a share of a recovery pool.

Holders of general unsecured claims will receive a share of a recovery pool and any excess distributable cash.

Interests will be cancelled, and holders will receive no distribution.

Parties interested in a transaction must submit non-binding indications of interest by 5 p.m. ET on March 30. Final bids are due by 5 p.m. ET on May 9.

All bids must be accompanied by a 10% cash deposit.

BCBG said it will notify all qualified bidders of the baseline bid no later than May 15.

An auction will be held on May 22, if necessary. Bids at auction must be made in minimum increments of $500,000.

Under the proposed bid procedures, the company would be authorized to pay a work fee and expense reimbursement of up to a total of $1 million to encourage one or more parties to submit a qualified bid or to create a competitive bidding and auction process.

BCBG is a Vernon, Calif.-based designer, retailer and distributor of women’s apparel and accessories. The company filed bankruptcy on Feb. 28 under Chapter 11 case number 17-10466.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.