Daily News: September 11, 2017

rue21 Reorganization Plan Confirmed, BofA Agents Up to $125MM DIP


The U.S. Bankruptcy Court confirmed teen retailer rue21‘s first amended joint plan of reorganization.

As previously reported, upon the effective date, the debtors will have reduced approximately $700 million in funded debt from the debtors’ balance sheet, providing the debtors with the capital necessary to fund ongoing operations. Upon exiting these Chapter 11 cases, the reorganized debtors’ capital structure will consist of the exit ABL facility in the aggregate principal amount of up to $125 million at any time outstanding (with approximately $38.6 million expected to be outstanding on the effective date) and the exit term loan facility in the aggregate principal amount of $50 million plus the amount of any unpaid and accrued interest under the DIP term loan credit facility. Bank of America agented the DIP financing.

The pre-petition term loan secured claims are allowed in the aggregate principal amount of not less than $249.7 million, plus any accrued but unpaid interest thereon payable as of the petition date at the applicable interest rate and any accrued but unpaid fees and expenses payable in accordance with the pre-petition term loan documents.

The unsecured notes claims are allowed in the aggregate principal amount of not less than $239 million, plus any accrued but unpaid interest payable thereon as of the petition date at the applicable interest rate and any accrued but unpaid fees and expenses payable in accordance with the unsecured notes indenture.

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BofA Agents Up to $125MM ABL DIP for rue21