Soft Surroundings receives confirmation of amended Chapter 11 plan

By Sarah Lizee

Olympia, Wash., Nov. 3 – Soft Surroundings Holdings, LLC received confirmation of its recently amended Chapter 11 plan, according to an order filed Friday with the U.S. Bankruptcy Court for the Southern District of Texas.

As previously reported, the company said it has entered into a restructuring support agreement through which Coldwater Creek, under the ownership of Newtimes Group, will continue ongoing direct-to-consumer and e-commerce operations.

Under the plan, other secured claims and other priority claims are unimpaired.

Holders of first-lien secured claims, which are estimated at $60,000, will receive 50% of “distributable value” under the plan, which is listed as $75,000 in cash. Holders will also incur the obligation to fund the administrative expense claim backstop amount. This is expected to result in a recovery of 62% for holders.

Holders of second-lien secured claims, estimated at about $47 million, will receive the other 50% of distributable value, resulting in a recovery of less than 1%.

Holders of $29 million of general unsecured claims will receive their pro rata share of GUC trust interests. The trust will be funded with $200,000 in cash, leading to an almost zero recovery.

Holders of section 510(b) claims and interests will receive nothing.

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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