Container stores are allowed to withdraw from bankruptcy through privatization transactions

(Bloomberg) —— More than a month after submitting the bankruptcy law, the court approved the Container Store to withdraw from the bankruptcy procedure and formulate a plan supported by the lender to reduce the debt and provide new capital to the retailer to cope with Sales after the epidemic paralysis.

The Texas judge Alfredo Perez said on Friday that he will confirm the restructuring plan of the retail chain, which will privatize the company by replacing the lender’s debt to the company’s equity. The court documents showed that the reorganization reduced the long -term debt of about $ 88 million and provided a new cash of US $ 40 million for the Container Store. Reorganization will not affect the supplier or other unparalleled creditors, but it will eliminate existing shareholders, which is very common in Chapter 11.

The company said that after the protection of bankruptcy, the total value of the container Store’s corporate company is expected to be approximately 184 million to 216 million US dollars, and it will save about 3,800 jobs. According to the court documents submitted in December last year, the restructuring lenders include Golub Capital LLC, LCM Asset Management LLC and Glengon Capital Management LP.

The reorganization provided a new start for this wardrobe finisher and storage box seller in Copers, Texas, and the storage box seller. Chad Coben, chief reorganization officer of Container Store, said in the company’s protection in the company that the company was selling and the fierce competition of the COVID-19 era, reduced house sales, and fierce competition from competitors retailers, and the company was selling and selling. In terms of debt.

Perez said he will approve the transaction after dismissing the US Department of Justice and the Securities and Exchange Commission to protect third parties exempt from legal liabilities. Following the adults of the Supreme Court of the United States on the consent of these mechanisms in June, regulators have been questioning this mechanism called third -party release.

Perres said the release content in the Container Store reorganization plan passed the test of the Supreme Court because it provides a fair choice for all parties to choose from.

The case was the case of The Container Store Group Inc., which was tried by the Bankruptcy Court in the South District of Texas, numbered 24-90627.

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