Secure Home combined plan, statement hearing slated for May 25

By Sarah Lizee

Olympia, Wash., April 28 – Secure Home Holdings LLC’s combined hearing on its pre-packaged Chapter 11 plan and related disclosure statement has been scheduled for May 25, according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

According to the disclosure statement, the restructuring will result in a significant deleveraging of the debtor’s capital structure, which currently includes a $197.5 million first-lien facility, a $34 million second-lien term loan, and a $6.8 million PPP loan.

The post-emergence structure would consist of a $20 million exit facility and/or DIP takeback loans, and $125 million of reorganized equity interests.

The plan provides for payment of the DIP lenders (i) in full in either cash or an equal amount of DIP takeback loans and (ii) in full of the amounts outstanding under the roll-up DIP facility in reorganized equity interests at an implied equity value based on an assumed plan enterprise value of $145 million after deducting the estimated funded portion of the exit facilities and any DIP takeback loans on the effective date, subject to dilution from the management incentive plan.

The plan also provides for the conversion of not less than $95 million of first-lien secured claims to equity, and treatment of about $106.5 million of first-lien deficiency claims and second-lien deficiency claims as general unsecured claims under the plan.

The company said the plan provides for a comprehensive restructuring of the debtors’ pre-petition obligations, preserves the going-concern value of the debtors’ business, maximizes all creditor recoveries, and protects the jobs of the debtors’ employees, including management.

The Newtown Square, Pa.-based company provides technologically advanced security solutions, including residential and commercial security systems, home automation systems, smoke and carbon monoxide detectors, and other security solutions. The company filed bankruptcy on April 25 under Chapter 11 case number 21-10745.

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