Charming Charlie: Court confirms fourth amended reorganization plan

By Caroline Salls

Pittsburgh, April 3 – Charming Charlie’s fourth amended plan of reorganization was confirmed Tuesday by the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, Charming Charlie filed bankruptcy to implement a restructuring support agreement reached with a majority of its term loan lenders and equity sponsors.

The proposed restructuring calls for a deleveraging of more than $100 million with the support of the pre-bankruptcy secured term loan lenders.

The reorganized capital structure contemplates a $35 million new revolving credit facility and $50 million in new secured term debt through two tranches of term loans.

Debtor-in-possession ABL claims will be paid in full in cash using the proceeds of exit financing.

Term loan DIP claims will be converted into roughly $50 million in new term loans and 75% of reorganized holding company equity, subject to dilution.

Holders of pre-bankruptcy term loan claims will receive 25% of the reorganized holding company equity, subject to dilution.

Holders of general unsecured claims will receive a share of GUC rights.

Holders of existing equity will receive no distribution.

Charming Charlie is a Houston-based retailer of jewelry and accessories for women. The company filed bankruptcy on Dec. 11 under Chapter 11 case number 17-12906.

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