Pyxus International plan confirmation hearing scheduled for July 27

By Caroline Salls

Pittsburgh, June 18 – Pyxus International, Inc. obtained court approval of the solicitation procedures for its pre-packaged plan of reorganization, according to an order filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

The order also scheduled the plan confirmation hearing for July 27.

As previously reported, in connection with its Chapter 11 filing, the company entered into a restructuring support agreement with holders of more than 92% in principal amount of its first-lien notes and more than 67% in principal amount of its second-lien notes.

In addition, Pyxus said its receivables financing lenders and some key foreign lenders have granted waivers and amendments under their respective facilities, demonstrating significant global financial support.

Under the restructuring support agreement, Pyxus’ second-lien noteholders will convert $635 million of debt into equity or cash.

First-lien noteholders will extend the maturity date of their existing notes by four years.

All outstanding shares of Pyxus common stock and rights to acquire Pyxus common stock will be cancelled, and each holder of outstanding Pyxus common stock will be entitled to receive its share of $1 million in cash if that holder does not opt out of the third-party releases contained in the pre-packaged plan of reorganization or object to the plan.

General unsecured creditors will be paid in the ordinary course of business.

On the plan effective date, 8% of the fully diluted common stock of reorganized Pyxus will be reserved for issuance under a management incentive plan.

All vendors and foreign lenders will be paid in full.

Pyxus is a Morrisville, N.C.-based global agricultural company. The company filed bankruptcy on June 15 under Chapter 11 case number 20-11570.

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