Studio Movie Grill disclosure statement OK’d; plan hearing March 16

By Sarah Lizee

Olympia, Wash., Feb. 16 – Studio Movie Grill Holdings, LLC’s disclosure statement for its Chapter 11 plan of reorganization was approved Friday, according to an order filed with the U.S. Bankruptcy Court for the Northern District of Texas.

The plan confirmation hearing is scheduled for March 16.

The plan provides for a reorganization of the debtors as a going concern, with a reduced number of theaters to focus on profitable locations, as previously reported.

The debtors will fund distributions under the plan with new equity interests and a new senior secured term loan exit facility in an aggregate principal amount to be determined by Goldman Sachs Specialty Lending Group, LP.

Under the plan, holders of other priority claims and secured tax claims will receive payment in full.

Holders of pre-petition lenders’ claims will receive, if an equitization restructuring occurs, its pro rata share of the exit facility refinancing loans on a dollar-for-dollar basis, and thereafter, the applicable new units, plus their pro rata share of 50% of net proceeds of the Panterra claims recovered by the GUC trust in excess of $4 million.

If an asset sale restructuring occurs, holders of pre-petition lenders’ claims will receive all cash of the debtors other than the GUC trust assets; their pro rata share of the class A trust interests; and their pro rata share of the agent trust assets.

Holders of secured tax claims will receive payment in line with section 1129 of the Bankruptcy Code.

Holders of other secured claims will receive payment in full in cash, receive the collateral securing their claims, have their claims reinstated, or receive a new note with a principal amount equal to the amount of allowed claims with a term of five years.

Holders of general unsecured claims will receive their pro rata share of GUC trust interests. Each holder of general unsecured claims in an aggregate allowed amount greater than $2,500 may irrevocably elect on its ballot to have their claim irrevocably reduced to $2,500 and treated as a convenience class claim.

Holders of convenience class claims will receive payment in cash in an amount equal to 10% of their claims.

Intercompany claims and other debtor interests will either be reinstated or canceled, discharged, released and extinguished in full.

Holders of subordinated claims will receive no payment under the plan.

Interests in SMG Holdings will be deemed canceled with no distribution.

Studio Movie Grill is a Dallas-based dine-in movie theater chain. The company filed Chapter 11 bankruptcy on Oct. 23 under case number 20-32633.

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