Lucky Bucks receives confirmation of amended Chapter 11 plan

By Sarah Lizee

Olympia, Wash., July 28 – Lucky Bucks, LLC’s amended pre-packaged Chapter 11 plan has been confirmed by the U.S. Bankruptcy Court for the District of Delaware, according to a Friday press release.

As previously reported, secured lenders holding over 86% of Lucky Bucks’ secured debt had entered into a restructuring support agreement and agreed to equitize substantially all of Lucky Bucks’ secured debt and provide up to $43 million of new capital in the form of new first-lien debt.

The recapitalization transaction, which remains subject to regulatory approval, will reduce Lucky Bucks’ total secured debt by over $500 million and enhance liquidity.

The plan originally contemplated the reorganization of the operating companies either through a sale or through a standalone restructuring, and the winding down of the holding company.

Later, the parties agreed to pursue a standalone restructuring and sever the operating company (OpCo) debtors’ plan from Lucky Bucks Holdings LLC’s plan and move forward with the OpCo plan independent of the holding company.

As part of the restructuring, the company is getting a $104.5 million exit term loan facility, consisting of $43 million of five-year first-out priority exit term loans and $61.5 million of six-year second-out exit term loans.

Wilmington Savings Fund Society FSB is the administrative agent and collateral agent.

Interest on the exit facility is SOFR plus 750 basis points per annum.

Under the plan, holders of prepetition OpCo first-lien claims will receive their pro rata share of 100% of the new reorganized OpCo debtor equity, subject to dilution, and second-out priority exit term loans.

All outstanding and undisputed general unsecured claims against the OpCo debtors will be unaffected by the plan. Each holder will be paid in full in cash if its claim is due and payable before or on the plan effective date, and in the ordinary course otherwise.

All priority and other secured claims against the OpCo debtors will be paid in full in cash or receive other treatment that would render the claims unimpaired.

Holders of OpCo section 510(b) claims, intercompany interest, intercompany claims and equity interests are receiving nothing under the plan.

Lucky Bucks is a Norcross, Ga.-based digital skill-based coin operated amusement machine route operator. The company filed bankruptcy on June 8 under Chapter 11 case number 23-10758.

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