Bed Bath & Beyond files Chapter 11 plan and disclosure statement

By Sarah Lizee

Olympia, Wash., July 24 – Bed Bath & Beyond Inc. filed a Chapter 11 plan and disclosure statement with the U.S. Bankruptcy Court for the District of New Jersey.

As previously reported, the company received approval to sell the intellectual property assets of the Bed Bath & Beyond banner to Overstock.com, Inc. for a purchase price of $21.5 million in cash.

The debtors also received approval for the sale of the intellectual property assets of the buybuy BABY banner to Dream on Me Industries, Inc. for about $15.5 million.

The debtors also continue to monetize the value of their inventory and leasehold interests.

Under the plan, holders of other priority claims will receive payment in full in cash.

Holders of other secured claims will receive payment in full in cash, delivery of the collateral securing their claims, or reinstatement of their claims.

Holders of debtor-in-possession claims will receive distributable proceeds in line with a waterfall recovery. The liens securing the DIP claims will not be released and discharged until payment in full of the DIP claims.

Holders of allowed first-in, last-out claims will receive, to the extent their FILO claims are not already indefeasibly paid in full in cash or rolled up or converted into DIP debt prior to the effective date, distributable proceeds in line with the waterfall recovery. The liens securing the FILO claims will not be released and discharged until payment in full of the FILO claims.

Holders of junior secured claim will receive their pro rata share of a shared proceeds pool, only if proceeds are available after all senior claims (other than DIP and FILO claims) are paid in full. Holders will also receive any remaining distributable proceeds available after payment in full of all senior claims.

Holders of general unsecured claims will receive their pro rata share of the shared proceeds pool, only if proceeds are available after all senior claims (other than DIP and FILO claims) are paid in full and any remaining distributable proceeds available after payment in full of all senior claims.

No distribution will be made for intercompany claims, intercompany interests, interests in Bed Bath & Beyond or section 510(b) claims.

Bed Bath & Beyond is a chain of retail stores with headquarters in Union, N.J. The company filed bankruptcy on April 23 under Chapter 11 case number 23-13359.

© 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.