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Cases & Deals

August 10, 2017

Payless Holdings Emerges from Chapter 11 Bankruptcy Pursuant to Debt for Equity Swap Plan


King & Spalding advised an ad hoc steering committee of first lien term loan lenders (comprising approximately 70% of all such holders) in connection with the bankruptcy cases of Payless Holdings LLC and its affiliates (E.D. Mo.).  In connection with the bankruptcy case, the King & Spalding team advised the Ad Hoc Committee in connection with (i) backstopping an $80 million term DIP financing facility, (ii) negotiating and entering into a restructuring support agreement that served as the framework for Payless’ chapter 11 plan of reorganization, and (iii) negotiating and documenting Payless’ exit financing and corporate governance agreements. Payless emerged from chapter 11 on August 10, 2017 with the first lien term loan lenders as new majority owners of the company.