Daily News: March 27, 2012

Nebraska Book Receives Approval for Amended Plan Support Agreement


NBC Acquisition Corp. and its subsidiaries, including Nebraska Book Company (NBC), an industry provider in solutions for the college bookstore marketplace, received approval to execute and implement the Amended and Restated Plan Support Agreement, (the Amended PSA). The company filed their original Plan Support Agreement on March 7 along with their Second Amended Plan of Reorganization and Disclosure Statement, (Plan). The company and their noteholders negotiated and agreed upon the Amended PSA in connection with a March 22 hearing on the motion.

“This is a significant day for Nebraska Book,” said Barry Major, the company’s president. “We are more than ready to move beyond this process and get back to doing what we do best. This was a necessary step in our path to emergence.”

The Amended PSA reflects an agreement with a group of the company’s 10% senior secured noteholders holding approximately 70% of those notes and the company’s 8.625% senior subordinated noteholders holding over two-thirds of those notes in amount. In exchange for their signing the PSA, 8.625% senior subordinated noteholders are expected to receive an improved package of warrants to purchase stock in the reorganized Company along with $1.75 million to cover fees incurred by their advisors. The holders of Class 5 General Unsecured Claims are expected to receive cash payments equal in value to the percentage recovery by the 8.625% senior subordinated noteholders.

“By finalizing an agreement with both of these groups of noteholders, we are confident that we can move forward in this process with the support we need,” said Major. “We have been working very hard to streamline our business, making the necessary changes to ensure a strong future. We look forward to taking the next steps in our court process in order to facilitate our exit; with everyone on board, this will be much easier.”

Previously on abfjournal.com:

Nebraska Book Files Second Amended Plan of Reorganization, Thursday, March 08, 2012