Thrasio’s disclosure statement OK’d; plan hearing set for May 22

By Sarah Lizee

Olympia, Wash., April 19 – Thrasio Holdings, Inc. received approval of the disclosure statement for its Chapter 11 plan of reorganization from the U.S. Bankruptcy Court for the District of New Jersey on Thursday, according to an order.

The plan confirmation hearing is scheduled for May 22.

As a reminder, the company has entered into a restructuring support agreement with about 81% of its revolving credit facility lenders and about 88% of its term loan lenders that will eliminate about $495 million of the company’s existing debt, defer all interest payments in the first year post-emergence and infuse new capital into the company.

As part of the RSA, the company lined up a $360 million debtor-in-possession financing package that consists of $90 million of new money term loans and a $270 million rollup of prepetition first-lien term loans.

At emergence, the new-money loans will be converted to an exit senior secured first-lien first-out term loan facility, and the rollup will be converted into a senior secured first-lien second-out term loan exit facility.

Under the plan, other secured claims and other priority claims will be paid in full.

Holders of DIP facility claims will receive their pro rata share of the first-out take-back facility and a DIP exit fee.

Holders of $855.2 million of first-lien claims will receive their pro rata share of 100% of new common stock, subject to dilution by a DIP exit fee, backstop payment and a management incentive plan.

Holders of general unsecured claims will receive their pro rata share from a GUC recovery pool.

The $739.4 million of series X redeemable preferred stock interests, $1.08 billion of series D preferred stock interests, $560 million of series C preferred stock interests, $72 million of series B preferred stock interests, $16 million of series A preferred stock interests and $6 million of series Seed preferred interests will be canceled with no distribution.

Common stock interests will be canceled with no distribution.

Intercompany claims will be reinstated or otherwise addressed.

Intercompany interests will be reinstated or canceled with no distribution.

Thrasio is a Walpole, Mass.-based aggregator of e-commerce brands that operates within Amazon’s third-party marketplace. The company filed bankruptcy on Feb. 28 under Chapter 11 case number 24-11840.

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