Article/Intelligence
Conn’s Files Chapter 11 to Liquidate Via Store Closings, Sale Process For Receivables Securitization Assets; First Complex Case For Newly-Minted Judge Alfredo Perez
Relevant Document: First Day Declaration DIP Financing Motion Store Closing Procedures Motion The Conn’s debtors’ first day hearing is scheduled for today, July 24 at 12 p.m. ET – the first complex chapter 11 case for newly-appointed Judge Afredo R. Perez in Houston. The debtors filed Tuesday night, July 23. The debtors enter chapter 11 with a commitment for DIP financing from prepetition first lien lenders. The debtors intend to wind down the company via a liquidating plan after continuing prepetition store closing sales and running a marketing and sale process for their customer receivables/ABS loan portfolio, lease designation rights, servicing business and all other assets, according to first day declarant president and CEO Norman L. Miller. As shown in the corporate structure below, the debtors do not include the company’s securitization facility entities. The DIP consists of a senior secured superpriority, priming debtor-in-possession ABL credit facility to be documented as a fifth amendment to the debtors’ prepetition first lien facility. The DIP includes $5 million in new money DIP term loans (available upon entry of an interim order) and $20 million in “non-cash loans” in the form of relief from prepayment obligations. The DIP also contemplates repayment and refinancing[...]