Related Documents:
Disclosure Statement
Chapter 11 Plan
Tupperware filed its chapter 11 plan and disclosure statement in the Delaware Bankruptcy Court, outlining a plan of reorganization centered around a credit bid from the Dechert-led ad hoc group for 100% equity in debtor’s business.
The proposed plan broadly provides for the payment of administrative and priority claims in full and the transitioning of the remaining assets to a liquidating trust to facilitate the wind-down of the debtor’s business.
The purchasers include Stonehill, Alden and BAML, comprising $462.7mn, or 57%, of the prepetition $817mn secured debt. Stonehill has holdings of $165mn in secured loans and BAML holds $137mn, while Alden has $71mn and Strategic Investment holds $71mn. The ad hoc group also provided the debtor with an $8mn bridge loan prior to the company filing bankruptcy. According to court filings, the ad hoc group acquired its majority position for pennies on the dollar months prior to the bankruptcy filing.
The acquisition by the ad hoc group includes a $68.3mn credit bid and a $23.5mn cash payment. According to the proposed asset purchase agreement, the cash will be earmarked to pay down the $8mn prepetition bridge loan, fund the carve-out for administrative expenses and pay $2.5mn to the Pension Benefit Guaranty Corp. for the full release of any all claims against the sellers. The remaining cash consideration will be used to pay all remaining administrative claims and to fund a $2mn liquidation trust for the benefit of unsecured creditors, according to court documents.
Tupperware filed for chapter 11 bankruptcy Sept. 17, seeking a 30-day going concern sale to address its $812mn prepetition debt burden. The direct-sales housewares company secured approval from Judge Brendan Shannon to use $7.4mn cash on hand to fund the shortened sale process, according to court filings.
Jennifer Lappe, JD
jennifer.lappe@levfininsights.com
+1 346 256 1345
