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Soft Surroundings’ disclosure statement, DIP loan draw objection
By Sarah Lizee
Olympia, Wash., Sept. 29 – Soft Surroundings Holdings, LLC’s motions seeking approval of the disclosure statement for its plan and final approval of debtor-in-possession financing drew objections from the official committee of unsecured creditors, according to documents filed Friday with the U.S. Bankruptcy Court for the Southern District of Texas.
Gordon Brothers and its affiliate, 1903 Partners, and Brentwood Associates, the debtors’ majority equity holder, are proponents of the plan. The proposed $18 million in DIP financing is from 1903 Partners, LLC.
“The debtors seek to confirm a plan in less than five weeks that will bless 1903 Partners’ purchase of the debtors’ assets via a partial credit bid of rolled up first-lien debt and a subsequent designation of the direct-to-consumer business to Coldwater Creek,” the committee said in the disclosure statement objection.
“Brentwood Associates will receive broad releases under the plan and Gordon Brothers will be afforded four months to liquidate inventory at the debtors’ stores for its sole benefit.
“In contrast, unsecured creditors will receive nothing and will remain subject to litigation brought by 1903 Partners and the debtors.”
The company is proposing a Nov. 3 confirmation hearing.
The committee, which was formed less than a week ago, said it needs more time to investigate the prepetition claims and conduct of the debtors’ lenders and insiders.
A final hearing on the DIP financing is scheduled for Oct. 2.
The St. Louis-based retailer of women's apparel, home, shoe and accessories merchandise filed Chapter 11 bankruptcy on Sept. 10 under case number 23-90769.
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