BCBG Max Azria secures confirmation of amended plan of reorganization

By Caroline Salls

Pittsburgh, July 25 – BCBG Max Azria Group, LLC’s amended plan of reorganization was confirmed Tuesday by the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, BCBG Max Azria and some of its affiliates reached an agreement last month on a comprehensive restructuring that calls for the sale of substantially all the assets of the company through a Chapter 11 plan to Marquee Brands LLC and Global Brands Group Holding Ltd.

BCBG said the major components of the restructuring include a cash purchase price of $108.1 million paid by Marquee in exchange for the company’s intellectual property, including specified related contracts and assets and a cash purchase price of $23 million paid by Global Brands in exchange for inventory, contracts and other assets related to BCBG’s wholesale, ecommerce, partnership and retail business, including up to 22 stand-alone retail store locations.

The restructuring also includes an agreement from Marquee to provide Allerton Funding – the holder of 100% of the company’s new tranche A loans – a junior royalty interest in proceeds from Marquee’s use of the purchased intellectual property.

Under BCBG’s Chapter 11 plan, holders of administrative claims, debtor-in-possession financing claims, secured tax claims and other priority claims will be paid in full in cash.

Holders of other secured claims will either be paid in full in cash, receive the collateral securing the claim or have their claims reinstated.

The holder of the term loan tranche A claims will receive a share of excess distributable cash and payments due under a royalty sharing agreement.

Holders of term loan tranche B claims will receive a share of $1.75 million, plus some of the proceeds, if any, from specified avoidance actions.

Holders of unsecured claims will receive a share of a recovery pool if they vote to accept the plan. If they vote as a class to reject the plan, these creditors will receive no distribution.

Interest holders will receive no distribution.

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.

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