Clover Technologies secures approval of pre-packaged Chapter 11 plan

By Caroline Salls

Pittsburgh, Jan. 22 – 4L Holdings, which operates as Clover Technologies Group, LLC, announced Wednesday that it received court approval of its pre-packaged plan of reorganization, paving the way for the reorganized company to emerge from Chapter 11 in the coming days.

According to a company news release, the confirmed plan will give 4L a significantly stronger balance sheet and increased financial flexibility.

With the recent acquisition of Teleplan, the company said it will now possess the financial strength and operational capabilities to offer cost-effective, innovative supply chain solutions for customers worldwide, reaching more than 120 countries across Europe, the Americas and Asia Pacific.

“We are also well on our way to integrating Clover Wireless and Teleplan to unlock the customer value promised by the combination,” Teleplan and Clover Wireless chief executive officer Dan Perez said in the release.

“We are entering 2020 with momentum and our global team is more excited than ever about the opportunities ahead.”

As previously reported, on Dec. 11, 4L announced that it and some of its affiliates entered into a restructuring support agreement with the majority of its equityholders and a group of lenders representing more than 67% of its outstanding long-term debt that will equitize all of the company’s $644 million in long-term debt.

In addition to the restructuring, the company said the agreement supports two recently announced strategic transactions, including Clover Wireless’ acquisition of Teleplan, which closed on Dec. 4, and the sale of Clover Imaging to Norwest Equity Partners, which is expected to close in mid-December.

The proceeds from the sale of Clover Imaging will be used to pay down a portion of 4L’s outstanding long-term debt.

Under Clover’s pre-packaged plan, holders of term loan secured claims will receive a share of 100% of the new common stock in the reorganized company, subject to dilution from a management incentive plan and new warrants, as well as take-back term loans and 100% of excess cash.

Existing equityholders will receive a share of new warrants.

Unless paid in full in advance, general unsecured claims will be reinstated.

Administrative claims, priority tax claims and other secured claims will be paid in full in cash.

Kirkland & Ellis LLP is serving as 4L’s legal counsel, Jefferies LLC is serving as its financial adviser, and Alvarez & Marsal is serving as restructuring adviser.

Clover is a Hoffman Estates, Ill.-based collector and recycler of imaging supplies. The company filed bankruptcy on Dec. 16 in the U.S. Bankruptcy Court for the District of Delaware under Chapter 11 case number 19-12680.

© 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.