Bluestem Brands files plan covering variety of possible transactions

By Caroline Salls

Pittsburgh, June 1 – Bluestem Brands, Inc. filed its Chapter 11 plan and related disclosure statement Friday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, Bluestem has secured a stalking horse bid for its assets.

The company said in the disclosure statement that the plan “supports any and all potential value-maximizing paths forward, whether that takes the form of consummating the stalking horse APA sale transaction, a third-party sale transaction, a sale or distribution of new interests or some other agreed treatment of allowed claims.”

Under the plan, priority claims will be paid in full in cash.

Holders of pre-bankruptcy term loan claims will receive either sale proceeds or the collateral securing the claim.

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

Holders of qualified unsecured trade claims will be paid in full within six months of the plan effective date.

Holders of general unsecured claims will receive a share of a general unsecured claims recovery, and, if the holder votes to accept the plan, a cash payment as a released party.

Holders of interests and intercompany claims will receive no distribution.

The company is requesting a June 16 disclosure statement hearing.

Bluestem is an Eden Prairie, Minn.-based online retailer of a broad selection of name brand and private label general merchandise. The company filed bankruptcy on March 9 under Chapter 11 case number 20-10566.

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