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Mezzanine Claims Vote to Accept Basic Fun! Plan of Reorganization

Relevant Document: Voting Declaration Class 3 prepetition mezzanine claims voted to accept the Basic Fun! debtors’ plan of reorganization, according to a declaration filed today. Class 3 claims are the only class of claims eligible to vote on the plan. The plan incorporates the terms of a restructuring support agreement with key case parties, including nondebtor parent-level investor Falcon Structured Equity Partners, prepetition mezzanine lender and DIP lender Royal Bank of Canada, third-party DIP lender Great Rock Capital Partners Management and the debtors’ founders, Jay Foreman and John MacDonald. The voting declaration includes the following tabulation: Under the plan, holders of Class 3 prepetition mezzanine first-out loan claims would receive $2.5 million in new mezzanine first-out notes and approximately $3.9 million in new last-out notes, which would be purchased by Falcon and the founders on the effective date. Holders of Class 3 claims arising from the prepetition last-out loans would receive founder preferred equity in reorganized Basic Fun TopCo. Holders of Class 4 TopCo notes – defined as “those certain Term Notes issued between August 1, 2018 and September 30, 2019 made by Basic Fun in favor of Basic Fun TopCo” – are unimpaired and would receive their pro rata[...]