The case will likely be mostly completed by the end of 2021. That is, the Debtors hope to sell millions of dollars in assets by mid-November. However, in order to do so with the support of their lenders, the Debtors have agreed to have a quick sale process, with asset sales to close within 75 days of the filing date. In their initial papers and at the first day hearing, Sequential Brands disclosed their intention to market their assets for sale. These efforts have led to the bankruptcy filing and proposed sales through bankruptcy that the Debtors hope to execute in this case.ĪSSET SALES ARE SET TO CLOSE WITHIN WEEKS Sequential Brands has been working with its lenders through a series of defaults, waivers, and forbearance agreements in 20. Due to this unfortunate timing, Sequential Brands was unable to sell its assets for value throughout 2020 and early 2021. Just when the pitch was ready to go to market in March 2020, the COVID-19 pandemic began to hit with force in the United States. They worked with a team of professionals to develop a pitch to market their assets through early 2020. Recognizing that its debt load was unsustainable, the Debtors began looking for a way to sell some or all assets in 2019. The Debtors state that these debts are in excess of the value of all of the assets of the company. ![]() They estimate at the same time that they owe only $1.2-$1.4 million in unsecured debt. ![]() They have the support of some of their lenders for this plan.Īs of the bankruptcy filing, the Debtors owed at least $426 million in secured debt. Through the bankruptcy case, the Debtors are planning to sell off their brand rights and all other assets. At the first hearing in the Sequential Brands bankruptcy case on September 1, 2021, the lawyer for the Debtors set out this headline: The Debtors are Valuable Brands, but Too Much Leverage.
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