Bluestem Brands secures confirmation of Chapter 11 plan after sale

By Caroline Salls

Pittsburgh, Aug. 24 – Bluestem Brands, Inc.’s Chapter 11 plan was confirmed on Friday by the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, Bluestem secured court approval in July to sell its assets to a syndicate of term loan lenders.

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.

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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