Medley withdraws plan, statement, plans to file new documents soon

By Sarah Lizee

Olympia, Wash., May 13 – Medley LLC withdrew its original Chapter 11 plan and disclosure statement from the U.S. Bankruptcy Court for the District of Delaware on Thursday and plans to file new documents as soon as possible, according to an 8-K filing with the Securities and Exchange Commission.

A hearing on approval of the disclosure statement was previously scheduled for May 18.

Under the original plan, each holder of a secured claim was to receive, at the option of the debtor, payment in full in cash, the collateral securing their claim or reinstatement of their claim, as previously reported.

Holders of other priority claims were to receive treatment in a manner consistent with section 1129(a)(9) of the Bankruptcy Code.

If a holder of a notes claim voted to accept the plan, the holder would receive 0.6 of a share of newly issued class A common stock of Medley for each $25 principal amount of 7¼% senior notes due 2024 and/or 6 7/8% senior notes due 2026 that are held. If the holder did not vote on the plan, the holder would receive 0.45 of a share of new common stock for each $25 principal amount of the notes held. If the holder elected to opt out of the third-party release or voted to reject the plan, the holder would receive the lesser of 0.134 of a share of new common stock for each $25 principal amount of notes held, or a pro rata share of the $100,000 rejecting noteholder pool.

The holder of the strategic claim, Strategic Capital Advisory Services, LLC, was to receive 218,182 shares of new common stock, $350,000 in cash and a secured promissory note, which would provide for 10 consecutive quarterly payments of $225,000 in cash.

Holders of general unsecured claims were to receive, at the option of the debtor, the lesser of the amount of its claim in cash or its pro rata share of the $100,000 general unsecured claims pool, or reinstatement.

Intercompany claims were to be, at the option of the debtor, either reinstated or canceled, released and extinguished without any distribution.

Interests were to be retained.

New York-based Medley is an alternative asset management firm offering yield solutions to retail and institutional investors. The company filed bankruptcy on March 7 under Chapter 11 case number 21-10526.

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