NBG Home’s Chapter 11 plan effective as of July 20

By Sarah Lizee

Olympia, Wash., July 24 – Nielsen & Bainbridge, LLC, which does business as NBG Home, had its Chapter 11 plan go into effect on Thursday, according to a notice filed with the U.S. Bankruptcy Court for the Southern District of Texas.

The amended plan was confirmed on June 30, as previously reported.

Prior to confirmation, the company said the debtors worked around the clock to obtain the consensus necessary to proceed to confirmation.

NBG said the amended plan is the culmination of extensive efforts by the debtors and key stakeholders to facilitate the debtors’ emergence from Chapter 11.

The amended plan includes the following key terms:

• The reorganization of Quoizel and wind-down of the debtors’ remaining business segments;

• Holders of debtor-in-possession lender claims will receive their pro rata share of equity interests in reorganized Quoizel, a portion of exit second-lien term loans, an unsecured promissory note at reorganized Quoizel, and proceeds of the wind-down, following certain other distributions;

• Holders of ABL claims will receive their pro rata share of $12.5 million, exit first-lien term loans, and wind-down proceeds;

• Holders of first-lien term loan claims and second-lien term loan claims will receive their respective pro rata shares of the wind-down proceeds according to their respective priorities;

• Holders of general unsecured claims will receive their pro rata share of $300,000;

• Reorganized Quoizel will enter into a $15 million exit first-lien term loan facility and will have access to up to $16.452 million in new money commitments under an exit second-lien term loan facility.

Black Diamond Capital Management, LLC objected to the plan, as previously reported.

“After its unsuccessful attempt to serve as a DIP lender, Black Diamond declined to participate in the sale process and instead became an active litigant in these Chapter 11 cases,” NBG said in court documents.

“Now, it seeks conversion to Chapter 7 and a full liquidation of the debtors, regardless of the consequences, and without articulating any actual benefit of doing so.”

The company had asked to expedite its confirmation schedule, warning that its projected cash flows can’t cover the administrative costs of the case beyond the next few weeks.

Neither the DIP lenders nor other parties were willing to finance the cases beyond the proposed timeline.

The home decor company is based in Austin, Tex. The company filed bankruptcy on Feb. 8 under Chapter 11 case number 23-90071.

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