Catalina Marketing plan confirmation hearing moved to April 24

By Sarah Lizee

Olympia, Wash., April 14 – Catalina Marketing Corp.’s combined hearing on confirmation of its pre-packaged Chapter 11 plan and final approval of the related disclosure statement has been moved to April 24 from April 28, according to a notice filed with the U.S. Bankruptcy Court for the Southern District of New York.

As previously reported, the company filed Chapter 11 to implement a restructuring support agreement with more than 99% of its lenders. Catalina has also decided to sell its Japanese entity, Catalina Marketing Japan KK, to Yosemite 2 KK, which is an equity-funded entity of D Capital, Inc.

Currently, the company’s capital structure includes a $36 million super-priority term loan, a $110.4 million subordinated first-out term loan and a $224 million subordinated last-out term loan.

According to a disclosure statement filed March 28, the debtors’ $370.4 million of secured debt will be reduced by about 70% to about $110.4 million.

A new $110.4 million term loan facility will be issued to holders of first-out debt claims, subject to dilution by a management incentive plan (MIP). This is expected to lead to a 90% to 100% recovery for this class.

All other creditors are expected to be unimpaired.

Holders of last-out debt claims will be entitled to receive their pro rata share of 100% of the new common stock, subject to dilution from the MIP. Existing equity will be canceled.

Holders of super-priority senior term loan claims will be paid in full in cash in the amount of $36 million, plus accrued interest and other amounts due.

The debtors will continue to pay allowed general unsecured claims in the ordinary course of business.

Catalina hopes to complete the sale and balance sheet restructuring within 30 days.

Catalina is a St. Petersburg, Fla.-based provider of personalized digital media. The company filed bankruptcy on March 28 under Chapter 11 case number 23-10469.

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