Perkins & Marie amends noteholder, unsecured creditor plan treatment

By Caroline Salls

Pittsburgh, Sept. 6 - Perkins & Marie Callender's Inc. filed an amended plan of reorganization and related disclosure statement on Sept. 3 with the U.S. Bankruptcy Court for the District of Delaware that changes the proposed treatment for several creditor classes.

Under the amended plan,

• Holders of administrative claims, priority tax claims, convenience claims and other priority claims will be paid in full in cash;

• Senior secured noteholders will receive new secured term loans in the amount of their claim and cash for any interest due on the plan effective date. The cash payment is new to the amended plan;

• Holders of other secured claims will either have their claims reinstated, be paid in full in cash or receive the collateral securing their claims;

• Senior noteholders will receive membership interests in the reorganized holding company. However, under the amended plan, eligible claimants can make a cash election instead;

• General unsecured creditors who are cash-eligible claimants will receive cash equal to the lesser of 14% of their claims and their share of a cash cap amount plus their share of an avoidance action recovery pool. Cash-eligible claimants can elect to receive equity in lieu of cash.

General unsecured creditors who are not cash eligible will receive a share of reorganized holding company membership interests.

Under the original plan, general unsecured creditors could elect to receive either cash or equity in the reorganized company, with creditors who elected the cash option receiving cash equal to the lesser of 10% of their claims and their share of $1.5 million;

• Holders of subordinated claims and equity interests in the holding company will receive no distribution; and

• Holders of subsidiary debtor equity interests will remain effective and outstanding.

The disclosure statement hearing is scheduled for Sept 8.

Perkins & Marie, a Memphis-based operator and franchiser of full-service restaurants, filed for bankruptcy on June 13. The Chapter 11 case number is 11-11795.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.