![]() This is akin to not having a record date for dividend payments but just having a payment. This is important for trading the notes because the potential recovery remains with the traded notes until there is some actual payment. It is important to note that the "Distribution Record Date shall not apply to publicly held securities". The notes could continue to trade even after the plan itself becomes effective because they could, in theory, get recoveries from the liquidating trust. Most of their potential recoveries depend upon various litigations that could last a very long time - years. The noteholders could actually get some recovery. Pro Rata share of (i) the Shared Proceeds Pool, only if such proceeds are available after all senior Claims (other than the DIP Claims and FILO Claims) are paid in full and (ii) any remaining Distributable Proceeds available after payment in full of all senior Claims. The unsecured noteholders who have a total claim of approximately $1.030 billion are classified to be in the General Unsecured Claim Class (Class 6). Often it is on the plan effective date, but the plan did not actually mention that day. I did not see any reference to a specific day when shares will be cancelled. Treatment: In full and final satisfaction of each Allowed Interest in BBB, each Allowed Interest in BBB shall be canceled, released, and extinguished, and will be of no further force or effect and no Holder of Interests in BBB shall be entitled to any recovery or distribution under the Plan on account of such Interests. The words "Interest in BBB" refers to BBBYQ shareholders. No recovery and BBBYQ shares will be cancelled. Shareholders are NOT even allowed to vote - they are assumed to have voted to reject the plan. All that is needed is for them to vote to accept the plan, which they are, for it to be confirmed. Class 3 are the DIP lenders, led by Sixth Street. Parties are still able to file objections asserting that the plan is not fair/equitable for the court to consider, but they do not need all classes to vote to accept the plan. Only one impaired class is required to vote to accept the plan (2/3 of the dollar amount of the claim class and a simple majority of holders within that class) for the plan to be confirmed by the court. They are expecting to have the plan confirmed under section 1129(b), which is often referred to as the "cramdown" approach. The actual payments to claim holders from these various actions is governed by a very, very complex waterfall (Article 1V.B found on page 28 of the plan). Some of the cash received from expected avoidance/preference actions, litigation over shipping/price gauging, and litigation against directors/officers (D&O parties) will go into this trust. ![]() As often happens when a bankrupt company liquidates instead of reorganizing and exiting Ch.11 with operations, BBBY is going to create a liquidating trust when the plan becomes effective. Under the filed plan (docket 1429) Bed Bath & Beyond will be completely liquidated. Because they kept extending auction dates to maximize asset sales, they delayed filing a plan. Under the DIP Milestones ( docket 76) a plan was to be filed by June 30. Based on various comments made by lawyers at a hearing earlier this week, I am expecting a plan confirmation hearing in September.īBBYQ Stock Price Since Bankruptcy Filing That means the latest BBBYQ equity capitalization of over $270 million is actually worth $0.00. Under the plan BBBYQ shareholders get no recovery. Wolterk/iStock Editorial via Getty Imagesīankrupt Bed Bath & Beyond ( OTCPK:BBBYQ) finally filed their Ch.11 plan on July 20 just before midnight. ![]()
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