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Tuesday Morning Announces Confirmation of Plan of Reorganization

December 24, 2020, 08:15 AM
Filed Under: Bankruptcy

Tuesday Morning and certain of its subsidiaries announced that the U.S. Bankruptcy Court for the Northern District of Texas has confirmed the Company’s Plan of Reorganization (the “Plan”). As a result, Tuesday Morning expects to successfully emerge from Chapter 11 protection by the end of December after it has satisfied the conditions to the effectiveness of the Plan.

“We are pleased to have reached this critical milestone that sets the stage for our emergence as a stronger, more streamlined business,” stated Steve Becker, Chief Executive Officer. “Throughout our reorganization, we have continued to work to deliver on our obligations to our stakeholders and partners. I want to thank our associates, customers, vendors, creditors, and equity investors for their steadfast support during this period which will allow us to operate our business going forward. We look forward to Tuesday Morning’s future long-term success.”

Upon emergence, Tuesday Morning expects to have sufficient liquidity to support ongoing operations and strategic initiatives. Under the terms of the Plan, the capital structure of the reorganized company is expected to consist of a $110 million asset-backed lending credit facility which will provide working capital and $25 million in principal amount of a new senior subordinated note. Additionally, approximately $40 million in cash proceeds from an upcoming backstopped rights offering will be applied to pay creditors under the Plan.

Haynes and Boone, LLP is serving as legal advisor, Miller Buckfire, a Stifel company is serving as financial advisor, and AlixPartners LLP is serving as restructuring advisor to Tuesday Morning.

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