Payless disclosure statement approved; plan hearing set for Oct. 23

By Caroline Salls

Pittsburgh, Sept. 18 – Payless Holdings LLC, which does business as Payless ShoeSource, received court approval of the disclosure statement for its plan of reorganization, according to an order filed Wednesday with the U.S. Bankruptcy Court for the Eastern District of Missouri.

The plan confirmation hearing is scheduled for Oct. 23.

Payless said in the disclosure statement that the plan will significantly de-lever its capital structure and preserve its profitable business segments.

“The reorganized debtors will be well positioned to compete in the retail industry with the segments of the company best primed to do so,” the disclosure statement said.

If the plan is confirmed, Payless said it will emerge from Chapter 11 with 89% less funded debt.

The company’s exit capital structure will consist of a new first-lien facility and new common units in the reorganized company.

Holders of tranche A-1 term loan claims will receive a cash payment.

Holders of tranche A-2 term loan secured claims will receive a share of 100% of the new common units.

Holders of general unsecured claims will receive a share of liquidating trust assets.

All equity interests in the holding company will be extinguished with no consideration paid.

Payless is a Topeka, Kan.-based specialty family footwear retailer. The company filed bankruptcy on Feb. 18, 2019 under Chapter 11 case number 19-40883.

© 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.