(Adds quote from judge, recasts headline)
By Dietrich Knauth
Sept 6 (Reuters) - A U.S. bankruptcy judge on Wednesday approved Party City Holdco's Chapter 11 bankruptcy plan, which will cancel about $1 billion in company debt and turn all of its equity value over to the retailer's lenders.
U.S. Bankruptcy Judge David Jones approved the deal at a court hearing in Houston, while acknowledging the poor outcome for individual shareholders whose shares will be wiped out. Party City simply could not repay all of its $1.4 billion in pre-bankruptcy debt and have money left over for shareholders, according to the judge.
"The math is what the math is," Jones told a shareholder who spoke up at the hearing. "It's one of those things where there simply is not an alternative."
Party City is estimated to be worth between $450 million and $750 million, the company's financial adviser Moelis & Co said in an Aug. 31 court filing. (Reporting by Dietrich Knauth in New York and Granth Vanaik in Bengaluru Editing by Nick Zieminski)
"Exit" - Google News
September 07, 2023 at 02:46AM
https://ift.tt/f1yl4OD
UPDATE 1-Party City set to exit bankruptcy with $1 billion debt reduction - Yahoo Finance
"Exit" - Google News
https://ift.tt/mL43wKa
https://ift.tt/PBjHplm
Bagikan Berita Ini
0 Response to "UPDATE 1-Party City set to exit bankruptcy with $1 billion debt reduction - Yahoo Finance"
Post a Comment