New Delaware Chapter 11 Filing – Modular Space Holdings, Inc.
Modular Space Holdings, Inc., along with six (6) of its affiliates and subsidiaries, filed petitions for relief under Chapter 11 in the Bankruptcy Court for the District of Delaware earlier this morning. According to the First Day Declaration, ModSpace is the largest U.S.-owned provider of temporary and permanent modular buildings and enters bankruptcy with a Restructuring Support Agreement, Debtor-in-Possession Financing and prepackaged Plan of Reorganization. Under the proposed Plan, the Debtors’ first lien ABL Lenders, who are providing the proposed DIP Financing, will have their pre-petition credit agreement amended and assumed as an Exit Credit Facility. ModSpace’s Second Lien Noteholders will receive their pro rata share of approximately one third of the equity in the Reorganized Entity and the right to participate in a rights offering of $90 million (approximately 60% of the equity in the Reorganized Entity). Existing equity holders will receive their pro rata share of slightly less than 5% of the equity and two tranches of warrants. The Disclosure Statement for the proposed Plan can be found here. Kurtzman Carson Consultants, LLC is the proposed claims agent. The cases have been assigned to the Honorable Kevin J. Carey.
As the law continues to evolve on these matters, please note that this article is current as of date and time of publication and may not reflect subsequent developments. The content and interpretation of the issues addressed herein is subject to change. Cole Schotz P.C. disclaims any and all liability with respect to actions taken or not taken based on any or all of the contents of this publication to the fullest extent permitted by law. This is for general informational purposes and does not constitute legal advice or create an attorney-client relationship. Do not act or refrain from acting upon the information contained in this publication without obtaining legal, financial and tax advice. For further information, please do not hesitate to reach out to your firm contact or to any of the attorneys listed in this publication.
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