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Cases & Deals

March 3, 2022

Sequential Brands Consummates Sale of Assets in Chapter 11 Cases

King & Spalding represented KKR Credit Advisors (“KKR”) and certain of its affiliates and managed funds as DIP lender (holding approximately $140 million) and prepetition Term B lender (holding approximately $290 million) in connection with the Sequential Brands Group, Inc. (“SQBG”) chapter 11 cases pending in the United States Bankruptcy Court for the District of Delaware. Following the sale of substantially all of SQBG’s assets in early November, and the subsequent payment in full of the DIP, SQBG emerged from chapter 11 on March 2, 2022 following the confirmation of a consensual plan of liquidation whereby KKR and the other prepetition Term B lenders received interests in a trust charged with the liquidation of SQBG’s remaining assets, concluding SQBG’s chapter 11 cases which provided for an all-in, essentially par recovery for the prepetition Term B lenders.  SQBG was a consumer active and lifestyle brand company that included popular brands such as Avia, GAIAM, Jessica Simpson and Joe’s Jeans.