Walking disclosure statement approved; plan hearing set for June 12

By Caroline Salls

Pittsburgh, April 20 – The Walking Co. Holdings, Inc. received court approval of the disclosure statement for its pre-packaged plan of reorganization, according to an order filed Friday with the U.S. Bankruptcy Court for the District of Delaware.

The plan confirmation hearing is scheduled to begin on June 12.

As previously reported, the Walking debtors have secured $70 million in equity commitments from their largest shareholders, as well as $50 million in financing to both support operations and provide exit financing that will allow Walking “to exit Chapter 11 as a substantially stronger company.”

Under the pre-packaged plan, all of the outstanding equity interests in the parent company will be extinguished.

The plan sponsors will provide a $10.2 million consideration in cash on the effective date and will be issued all of the new common stock of the reorganized parent, subject to dilution resulting from new common stock that may be issued to applicable pre-bankruptcy subordinated noteholders upon their exercise of new warrants that may be exchanged for ½% of the new common stock.

Administrative claims, debtor-in-possession facility claims, priority tax claims, priority non-tax claims and pre-bankruptcy secured loan agreement claims will be paid in full or rendered unimpaired.

In addition to receipt of the warrants, pre-bankruptcy subordinated notes claims will be amended, with the maturity date extended three years until March 31, 2022 and with unpaid interest and fees due as of the effective date capitalized into the principal.

Holders of general unsecured claims will receive a share of a $2.55 million fund.

Walking is a Santa Barbara, Calif.-based comfort footwear retailer. The company filed bankruptcy on March 6 under Chapter 11 case number 18-10474.

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