RGN-Group Holdings receives court confirmation of Chapter 11 plan

By Sarah Lizee

Olympia, Wash., Aug. 19 – RGN-Group Holdings, LLC’s Chapter 11 plan was confirmed Thursday by the U.S. Bankruptcy Court for the District of Delaware, according to an order.

As previously reported, the debtors will fund distributions under the plan with an exit facility, if applicable, cash held on the effective date and recapitalization of the guarantor debtors or replacement of any guaranty, as applicable.

The $163.5 million exit facility would be provided by Regus Corp. Interest would be Libor plus 460 basis points, subject to a 0.25% Libor floor. The facility would mature in six years.

According to a plan supplement filed Aug. 5, Regus and the company are still negotiating the terms of the facility.

Under the plan, holders of claims against the reorganizing debtors will receive the following treatment:

• Holders of administrative claims, professional fee claims, debtor-in-possession claims and priority tax claims will be paid in full;

• Holders of other secured claims will receive payment in full in cash, the collateral securing their claims, reinstatement of their claims or other treatment rendering their claims unimpaired;

• Holders of other priority claims and contingent guaranty claims against guarantor debtors will receive payment in full in cash or other treatment leaving them unimpaired;

• Holders of pre-petition credit agreement claims will receive reinstatement of their claims;

• Holders of non-contingent guaranty claims against guarantor debtors will receive payment in full in cash;

• Holders of general unsecured claims against guarantor debtors and assuming SPE debtors will receive payment in full in cash, reinstatement of their claims or other treatment leaving their claims unimpaired;

• Holders of general unsecured claims against rejecting SPE debtors will receive payment in full in cash; and

• All intercompany claims and existing interests will be reinstated.

Holders of claims against the liquidating debtors will receive the following treatment:

• Holders of other priority claims against liquidating SPE debtors will receive payment in full in cash or other treatment leaving their claims unimpaired.

• Holders of pre-petition credit agreement claims will receive the consideration provided for under the liquidating SPE debtors’ settlement.

• Holders of general unsecured claims will receive their pro rata share of the applicable liquidating SPE debtor distribution pool in cash;

• Intercompany claims will be extinguished, compromised, addressed, canceled or settled without any distribution; and

• Existing interest will be discharged, canceled, released and extinguished with no distribution.

Carrollton, Tex.-based RGN provides workplace solutions to independent and mobile professionals, home-based businesses, small and emerging businesses and midsize-to-large corporations. The company filed Chapter 11 bankruptcy on Aug. 17, 2020 under case number 20-11961.

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