IN THE UNITED STATES BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF TEXAS
HOUSTON DIVISION §
In re: § Chapter 11
§
CEC ENTERTAINMENT, INC., et al., § Case No. 20-33163 (MI) §
Debtors.1 § (Jointly Administered) §
SECOND AMENDED JOINT CHAPTER 11 PLAN OF CEC ENTERTAINMENT, INC. AND ITS DEBTOR AFFILIATES WEIL, GOTSHAL & MANGES LLP
Alfredo R. Pérez Clifford W. Carlson
700 Louisiana Street, Suite 1700 Houston, Texas 77002
Telephone: (713) 546-5000 Facsimile: (713) 224-9511
WEIL, GOTSHAL & MANGES LLP
Matthew S. Barr (admitted pro hac vice) Ryan Preston Dahl (admitted pro hac vice) Scott R. Bowling (admitted pro hac vice) Lauren Tauro (admitted pro hac vice) 767 Fifth Avenue
New York, New York 10153 Telephone: (212) 310-8000 Facsimile: (212) 310-8007 Attorneys for Debtors
and Debtors in Possession Dated: November 3, 2020 Houston, Texas
1 The Debtors in these chapter 11 cases, along with the last four digits of each Debtor’s federal tax identification
number, as applicable, are BHC Acquisition Corporation (0947); CEC Entertainment Concepts, L.P. (3011); CEC Entertainment Holdings, LLC (9147); CEC Entertainment, Inc. (5805); CEC Entertainment International, LLC (8177); CEC Entertainment Leasing Company (4517); CEC Leaseholder, LLC (N/A); CEC Leaseholder #2, LLC (N/A); Hospitality Distribution Incorporated (5502); Peter Piper Holdings, Inc. (6453); Peter Piper, Inc. (3407); Peter Piper Texas, LLC (6904); Peter Piper Mexico, LLC (1883); Queso Holdings Inc. (1569); SB Hospitality Corporation (4736); SPT Distribution Company, Inc. (8656); and Texas PP Beverage, Inc. (6895). The Debtors’ corporate headquarters and service address is 1707 Market Place Boulevard #200, Irving, TX 75063.
Table of Contents
Page
ARTICLE I. Definitions and Interpretation. ...1
1.1 Definitions...1
1.2 Interpretation; Application of Definitions; Rules of Construction. ...17
1.3 Reference to Monetary Figures. ...17
1.4 Consent Rights of Consenting Creditors...17
1.5 Controlling Document. ...18
ARTICLE II. Administrative Expense Claims, Fee Claims, DIP Claims, and Priority Tax Claims...18
2.1 Treatment of Administrative Expense Claims and Priority Tax Claims. ...18
2.2 Treatment of Fee Claims. ...18
2.3 Treatment of Priority Tax Claims. ...19
2.4 Treatment of DIP Claims. ...19
2.5 Payment of Fees and Expenses Under DIP Order. ...20
2.6 Treatment of Adequate Protection Claims. ...20
ARTICLE III. Classification of Claims and Interests. ...20
3.1 Classification in General. ...20
3.2 Formation of Debtor Groups for Convenience Only. ...20
3.3 Summary of Classification of Claims and Interests. ...20
3.4 Special Provision Governing Unimpaired Claims. ...21
3.5 Separate Classification of Other Secured Claims. ...21
3.6 Elimination of Vacant Classes. ...21
3.7 Voting Classes; Presumed Acceptance by Non-Voting Classes...21
3.8 Voting; Presumptions; Solicitation. ...22
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3.10 No Waiver. ...22
ARTICLE IV. Treatment of Claims and Interests. ...22
4.1 Class 1: Other Secured Claims. ...22
4.2 Class 2: Other Priority Claims. ...23
4.3 Class 3: First Lien Debt Claims. ...23
4.4 Class 4: Senior Unsecured Notes Claims...23
4.5 Class 5: General Unsecured Claims. ...24
4.6 Class 6: Intercompany Claims. ...24
4.7 Class 7: Subordinated Claims. ...24
4.8 Class 8: Existing Queso Interests. ...25
4.9 Class 9: Intercompany Interests. ...25
4.10 Treatment of Vacant Classes. ...25
ARTICLE V. Means for Implementation. ...25
5.1 Compromise and Settlement of Claims, Interests, and Controversies. ...25
5.2 Corporate Action. ...26
5.3 Sources of Consideration for Plan Distributions. ...26
5.4 Deemed Consolidation. ...26
5.5 Exit Credit Agreement. ...27
5.6 Authorization and Issuance of New Equity Interests and New Warrants. ...27
5.7 Officers and Boards of Directors. ...28
5.8 Continued Corporate Existence; Effectuating Documents; Further Transactions. ...29
5.9 Management Incentive Plan. ...30
5.10 Cancellation of Existing Securities and Agreements. ...30
5.11 Cancellation of Certain Existing Security Interests. ...32
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5.13 Creditors’ Committee Settlement. ...33
5.14 GUC Trust ...33
ARTICLE VI. Distributions. ...36
6.1 Distributions Generally. ...36
6.2 No Postpetition Interest on Claims. ...36
6.3 Date of Distributions. ...36
6.4 Distribution Record Date. ...36
6.5 Distributions After Effective Date ...37
6.6 Disbursing Agent. ...37
6.7 Delivery of Distributions. ...37
6.8 Unclaimed Property. ...38
6.9 Satisfaction of Claims. ...39
6.10 Manner of Payment under Plan...39
6.11 Fractional New Equity Interests, New Warrants and De Minimis Cash Distributions. ...39
6.12 No Distribution in Excess of Amount of Allowed Claim. ...40
6.13 Allocation of Distributions Between Principal and Interest. ...40
6.14 Exemption from Securities Laws. ...40
6.15 Setoffs and Recoupments. ...41
6.16 Rights and Powers of Disbursing Agent. ...41
6.17 Withholding and Reporting Requirements. ...42
ARTICLE VII. Procedures for Disputed Claims. ...43
7.1 Allowance of Claims...43
7.2 Claims Objections. ...43
7.3 Estimation of Claims...44
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7.5 Time to File Objections to Claims. ...44
7.6 Disallowance of Claims. ...44
7.7 Amendments to Claims. ...44
7.8 No Distributions Pending Allowance. ...45
7.9 Disputed Claims Reserve. ...45
7.10 Distributions After Allowance. ...45
7.11 Claims Resolution Procedures Cumulative. ...45
ARTICLE VIII.Executory Contracts and Unexpired Leases. ...45
8.1 General Treatment. ...45
8.2 Determination of Cure Amounts and Deemed Consent. ...46
8.3 Rejection Damages Claims. ...47
8.4 Survival of the Debtors’ Indemnification Obligations. ...47
8.5 Employment Arrangements. ...48
8.6 Insurance Contracts. ...48
8.7 Modifications, Amendments, Supplements, Restatements, or Other Agreements. ...49
8.8 Reservation of Rights. ...49
ARTICLE IX. Conditions Precedent to Occurrence of Effective Date. ...50
9.1 Conditions Precedent to Effective Date. ...50
9.2 Waiver of Conditions Precedent. ...52
9.3 Effect of Failure of a Condition. ...52
ARTICLE X. Effect of Confirmation. ...52
10.1 Binding Effect. ...52
10.2 Vesting of Assets. ...53
10.3 Discharge of Claims Against and Interests in Debtors. ...53
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10.5 Injunction Against Interference With Plan. ...54
10.6 Plan Injunction. ...54
10.7 Releases...55
10.8 Exculpation. ...58
10.9 Injunction Related to Releases and Exculpation. ...59
10.10 Waiver of Avoidance Claims. ...59
10.11 Subordinated Claims. ...59
10.12 Retention of Causes of Action and Reservation of Rights. ...59
10.13 Ipso Facto and Similar Provisions Ineffective. ...59
ARTICLE XI. Retention of Jurisdiction. ...60
11.1 Retention of Jurisdiction. ...60
ARTICLE XII. Miscellaneous Provisions. ...62
12.1 Statutory Fees...62
12.2 Closing of Chapter 11 Cases. ...62
12.3 Exemption from Certain Transfer Taxes. ...62
12.4 Request for Expedited Determination of Taxes. ...63
12.5 Dates of Actions to Implement Plan. ...63
12.6 Amendments. ...63
12.7 Revocation or Withdrawal of Plan. ...64
12.8 Severability. ...64
12.9 Governing Law. ...64
12.10 Immediate Binding Effect. ...65
12.11 Successors and Assigns...65
12.12 Entire Agreement. ...65
vi
12.14 Exhibits to Plan. ...65
12.15 Notices. ...65
12.16 Reservation of Rights. ...68
Each of CEC Entertainment, Inc.; Queso Holdings Inc.; BHC Acquisition Corporation; CEC Entertainment Concepts, L.P.; CEC Entertainment Holdings, LLC; CEC Entertainment International, LLC; CEC Entertainment Leasing Company; CEC Leaseholder, LLC; CEC Leaseholder #2, LLC; Hospitality Distribution Incorporated; Peter Piper Holdings, Inc.; Peter Piper, Inc.; Peter Piper Texas, LLC; Peter Piper Mexico, LLC; SB Hospitality Corporation; SPT Distribution Company, Inc.; and Texas PP Beverage, Inc. (each, a “Debtor” and collectively, the “Debtors”) proposes the following joint chapter 11 plan pursuant to section 1121(a) of the Bankruptcy Code. Capitalized terms used herein shall have the meanings set forth in Section 1.1 below.
ARTICLE I. DEFINITIONS AND INTERPRETATION. 1.1 Definitions.
The following terms shall have the respective meanings specified below:
Acquired Assets means the Assets of the Debtors acquired pursuant to the Purchase
Transaction.
Acquisition Agreement means a purchase and sale agreement governing a
transaction pursuant to the Purchase Transaction.
AcquisitionCo means, in the event the Purchase Transaction occurs, a corporate
subsidiary, wholly-owned indirectly by CEC Holdings, that shall acquire (directly or indirectly) all or substantially all of the Debtors’ assets and/or membership interests in accordance with the Acquisition Agreement and the Purchase Transaction Documents.
Ad Hoc Lender Group means the ad hoc group comprising certain unaffiliated
holders of First Lien Debt Claims and Senior Unsecured Notes Claims.
Adequate Protection Claims means all Claims against the Debtors under section
507(b) of the Bankruptcy Code on account of any Diminution in Value as defined in and set forth in the (i) Cash Collateral Order and (ii) DIP Order.
Administrative Expense Claim means any Claim constituting a cost or expense of
administration incurred during the Chapter 11 Cases of a kind specified under section 503(b) of the Bankruptcy Code (including section 503(b)(9) of the Bankruptcy Code) and entitled to priority under sections 507(a)(2), 507(b), or 1114(e)(2) of the Bankruptcy Code, including (i) the actual and necessary costs and expenses incurred after the Petition Date and through the Effective Date of preserving the Estates and operating the businesses of the Debtors (such as wages, salaries, or commissions for services and payments for goods and other services and leased premises) and (ii) Fee Claims.
Administrative Expense Claims Bar Date means the date by which requests for
payment of Administrative Expense Claims (other than Fee Claims and Claims asserted pursuant to section 503(b)(9) of the Bankruptcy Code) must be filed with the Bankruptcy Court, which shall be thirty (30) days after the Effective Date.
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Allowed means, with respect to any Claim against or Interest in a Debtor, (i) (a) that
is timely filed by the deadline to file proofs of Claim, or (b) as to which there exists no requirement for the holder of a Claim to file such Claim under the Plan, the Bankruptcy Code, the Bankruptcy Rules, or a Final Order, (ii) (a) that is listed in the Schedules as not contingent, not unliquidated, and not disputed, and (b) for which no contrary proof of claim has been timely filed, or (iii) allowed under the Plan or by a Final Order. With respect to any Claim described in clause (i) above, such Claim shall be considered allowed only if, and to the extent that, (A) no objection to the allowance of such Claim has been asserted, or may be asserted, on or before the time period set forth in the Plan, and no request for estimation or other challenge, including, without limitation, pursuant to section 502(d) of the Bankruptcy Code or otherwise, has been interposed and not withdrawn within the applicable period fixed by the Plan or applicable law, (B) an objection to such Claim is asserted and such Claim is subsequently allowed pursuant to a Final Order, (C) such Claim is settled pursuant to an order of the Bankruptcy Court, (D) such Claim is settled pursuant to written agreement by the holder of the Claim and the Debtors, the Reorganized Debtors, or the GUC Trustee, as applicable, or (E) such Claim is allowed pursuant to the Plan or any agreements related thereto and such allowance is approved and authorized by the Bankruptcy Court; provided, however, that notwithstanding the foregoing, the Reorganized Debtors shall retain all claims and defenses with respect to allowed Claims that are reinstated or otherwise unimpaired pursuant to the Plan.
Amended and Restated PSA means the Amended and Restated Plan Support
Agreement, dated as of September 25, 2020, by and among the Debtors and the other parties signatory thereto (as amended, supplemented, or otherwise modified from time to time).
Asset means all of the rights, title, and interests of a Debtor in and to property of
whatever type or nature (including real, personal, mixed, intellectual, tangible, and intangible property).
Assumption Dispute means an unresolved objection regarding assumption,
assumption and assignment, Cure Amount, “adequate assurance of future performance” (within the meaning of section 365 of the Bankruptcy Code), or other issues relating to assumption or assumption and assignment of an executory contract or unexpired lease.
Avoidance Actions means all claims and Causes of Action to avoid a transfer of
property or an obligation incurred by the Debtors arising under sections 544, 545, 547, 548, 549, and 550 of the Bankruptcy Code and applicable nonbankruptcy law.
Bankruptcy Code means title 11 of the United States Code, as amended from time
to time, as applicable to these Chapter 11 Cases.
Bankruptcy Court means the United States Bankruptcy Court for the Southern
District of Texas having jurisdiction over the Chapter 11 Cases and, to the extent of any reference made under section 157 of title 28 of the United States Code or the Bankruptcy Court is determined not to have authority to enter a Final Order on an issue, the District Court having jurisdiction over the Chapter 11 Cases under section 151 of title 28 of the United States Code.
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Bankruptcy Rules means the Federal Rules of Bankruptcy Procedure as
promulgated by Supreme Court of the United States under section 2075 of title 28 of the United States Code, as amended from time to time, applicable to the Chapter 11 Cases, and any local rules of the Bankruptcy Court.
Business Day means any day other than a Saturday, a Sunday, or any other day on
which banking institutions in New York, New York are authorized or required by law or executive order to close.
Cash means legal tender of the United States of America.
Cash Collateral Order means the Interim Order (I) Authorizing the Debtors to Use Cash Collateral, (II) Granting Adequate Protection to the Prepetition Secured Parties, (III) Modifying the Automatic Stay, (IV) Scheduling a Final Hearing, and (V) Granting Related Relief [Docket No. 114] and any final order in respect thereof, which may be the DIP Order.
Cause of Action means any action, claim, cross-claim, third-party claim, cause of
action, controversy, dispute, demand, right, lien, indemnity, contribution, guaranty, suit, obligation, liability, loss, debt, fee or expense, damage, interest, judgment, cost, account, defense, remedy, offset, power, privilege, proceeding, license, and franchise of any kind or character whatsoever, known, unknown, foreseen or unforeseen, existing or hereafter arising, contingent or non-contingent, matured or unmatured, suspected or unsuspected, liquidated or unliquidated, disputed or undisputed, secured or unsecured, assertable directly or derivatively (including any alter ego theories), whether arising before, on, or after the Petition Date, in contract or in tort, in law or in equity, or pursuant to any other theory of law (including under any state or federal securities laws). For the avoidance of doubt, Cause of Action also includes (i) any right of setoff, counterclaim, or recoupment and any claim for breach of contract or for breach of duties imposed by law or in equity, (ii) the right to object to Claims or Interests, (iii) any claim pursuant to section 362 or chapter 5 of the Bankruptcy Code, (iv) any claim or defense including fraud, mistake, duress, and usury and any other defenses set forth in section 558 of the Bankruptcy Code, and (v) any state law fraudulent transfer claim.
CEC means CEC Entertainment, Inc.
CEC Holdings means, in the event of the Purchase Transaction, a Delaware
corporation (or limited liability company that elects to be taxed as a corporation for federal income tax purposes since formation) organized by the First Lien Administrative Agent at the direction of the Requisite Consenting Creditors that indirectly owns all of the capital stock of AcquisitionCo.
Change means change, effect, event, occurrence, state of facts, circumstance,
condition or combination of the foregoing.
Chapter 11 Cases means the jointly administered cases under chapter 11 of the
Bankruptcy Code commenced by the Debtors on the Petition Date in the Bankruptcy Court.
Claim means a “claim,” as defined in section 101(5) of the Bankruptcy Code,
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Claims Agent means Prime Clerk LLC.
Claims Objection Deadline means the deadline for objecting to a Claim, which
shall be on the date that is the later of (i) one-hundred and eighty (180) days after the Effective Date and (ii) such later date as may be fixed by the Bankruptcy Court, after notice and a hearing, upon a motion by the Reorganized Debtors or the GUC Trustee (solely with respect to General Unsecured Claims) filed before the day that is one-hundred and eighty (180) days after the Effective Date.
Class means any group of Claims or Interests classified under the Plan pursuant to
section 1122(a) of the Bankruptcy Code.
Collateral means any asset of an Estate that is subject to a Lien securing the
payment or performance of a Claim, which Lien is not invalid, is properly perfected as of the Petition Date, and is not subject to avoidance under the Bankruptcy Code or applicable nonbankruptcy law.
Confirmation Date means the date on which the Bankruptcy Court enters the
Confirmation Order.
Confirmation Hearing means the hearing to be held by the Bankruptcy Court
regarding confirmation of the Plan, as such hearing may be adjourned or continued from time to time.
Confirmation Order means the order of the Bankruptcy Court, as evidenced in
writing, confirming the Plan and, if applicable, approving any sale of the Debtors’ assets in the Chapter 11 Cases, which remains in full force and effect and is not subject to a stay.
Consenting Creditors has the meaning set forth in the Second Amended and
Restated PSA.
Creditors’ Committee means the Official Committee of Unsecured Creditors
appointed by the U.S. Trustee in these Chapter 11 Cases pursuant to section 1102 of the Bankruptcy Code, as it may be constituted from time to time.
Creditors’ Committee Challenge Deadline means the deadline established by the
DIP Order (as extended from time to time by the Requisite Consenting Creditors) for the Creditors’ Committee to commence a challenge with respect to Committee Investigation Matters (as defined in the DIP Order).
Creditors’ Committee Settlement means the settlement by and among the Debtors,
the Creditors’ Committee, and the Requisite Consenting Creditors resolving (i) any potential challenges by the Creditors’ Committee with respect to Committee Investigation Matters (as defined in the DIP Order) and (ii) any potential objections to the Plan and Disclosure Statement, which settlement is incorporated into the terms of this Plan.
Cure Amount means the payment of Cash or the distribution of other property (as
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contract or unexpired lease of the Debtors may agree or the Bankruptcy Court may order) necessary to (i) cure a monetary default by the Debtors in accordance with the terms of an executory contract or unexpired lease and (ii) permit the Debtors to assume such executory contract or unexpired lease under section 365(a) of the Bankruptcy Code.
Cure Notice means the notice of proposed Cure Amounts to be paid in connection
with an executory contract or unexpired lease of the Debtors that may be assumed or assumed and assigned under the Plan pursuant to section 365 of the Bankruptcy Code, which notice shall include (i) procedures for objecting to proposed assumptions or assumptions and assignments of executory contracts and unexpired leases, (ii) any Cure Amount to be paid in connection therewith, and (iii) procedures for resolution by the Bankruptcy Court of any related disputes.
D&O Policy means any Insurance Contract, including tail insurance policies,
providing coverage for directors’, members’, trustees’, and officers’ and other similar liability.
Debtor(s) has the meaning set forth in the introductory paragraph of the Plan. Definitive Documents has the meaning set forth in the Second Amended and
Restated PSA.
DIP Agent means UMB Bank, N.A., solely in its capacity as administrative agent
and collateral agent under the DIP Credit Agreement, its successors, assigns, or any replacement agent appointed pursuant to the terms of the DIP Credit Agreement.
DIP Claims means all Claims held by the DIP Facility Lenders and the DIP Agent
under the DIP Credit Agreement on account of, arising under, or relating to the DIP Facility or the DIP Order, which includes Claims for all principal amounts outstanding, interest, reasonable and documented fees, expenses, costs and other charges of the DIP Facility Lenders.
DIP Credit Agreement means the credit agreement governing the terms of the DIP
Facility dated as of October 9, 2020 by and among Queso, as holdings, CEC, as borrower, the DIP Agent, and the DIP Facility Lenders, with any amendments, restatements, amendments and restatements, modifications or supplements thereto as permitted by the DIP Order.
DIP Facility means the postpetition senior secured superpriority term loan facility
approved by the DIP Order.
DIP Facility Lenders means the lenders from time to time party to the DIP Credit
Agreement.
DIP Order means the order authorizing the Debtors to enter into the DIP Facility
[Docket No. 1118].
Disallowed means, with respect to any Claim or Interest, that such Claim or Interest
has been determined by a Final Order or specified in a provision of the Plan not to be Allowed.
Disbursing Agent means (i) in the case of distributions to holders of Allowed
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Trust and (ii) in the case of all other distributions to be made to holders of Allowed Claims under the Plan, any Debtor, Reorganized Debtor, or Person in its capacity as a disbursing agent under Section 6.6 hereof.
Disclosure Statement means the Disclosure Statement for the Plan, which is
prepared and distributed in accordance with sections 1125, 1126(b), or 1145 of the Bankruptcy Code, Bankruptcy Rules 3016 and 3018, or other applicable law, and all exhibits, schedules, supplements, modifications, amendments, annexes, and attachments to such disclosure statement.
Disclosure Statement Order means the order approving the Disclosure Statement
and the procedures for soliciting and tabulating votes on the Plan.
Disputed means, with respect to a Claim or Interest, (i) any Claim or Interest, which
Claim or Interest is disputed under Section 7.1 of the Plan or as to which the Debtors or a third party have interposed and not withdrawn an objection or request for estimation that has not been determined by a Final Order; (ii) any Claim or Interest, proof of which was required to be filed by order of the Bankruptcy Court but as to which a proof of claim or interest was not timely or properly filed; (iii) any Claim that is listed in the Schedules, as unliquidated, contingent or disputed, and as to which no request for payment or proof of claim has been filed; or (iv) any Claim or Interest that is otherwise disputed by any of the Debtors, the Reorganized Debtors, the GUC Trustee, or a third party (as applicable) in accordance with applicable law or contract, which dispute has not been withdrawn, resolved, or overruled by a Final Order. To the extent only the amount of a Claim or Interest is disputed, such Claim or Interest shall be deemed Allowed in the amount not disputed, if any, and Disputed as to the balance of such Claim or Interest.
Disputed Claims Reserve means the reserve established pursuant to and governed
by Section 7.9 of the Plan.
Distribution Record Date means, except as otherwise provided in the Plan, the
Effective Date.
DTC means the Depository Trust Company, a limited-purpose trust company
organized under the New York State Banking Law.
Effective Date means the date upon which all conditions to the effectiveness of the
Plan or the Purchase Transaction, if applicable, have been satisfied or waived in accordance with the terms hereof and, if applicable, thereof, respectively, and the Plan becomes effective.
Employment Arrangements means all employment and severance arrangements,
employment agreements, programs, and policies, and all compensation and benefits plans, policies, and programs of the Debtors applicable to their respective employees, retirees, consultants, contractors, and non-employee directors, including all savings plans, retirement plans, healthcare plans, disability plans, severance benefit plans, incentive plans (including equity and equity-based plans), welfare benefits plans, and life and accidental death and dismemberment insurance plans.
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Estate(s) means individually or collectively, the estate or estates of the Debtors
created under section 541 of the Bankruptcy Code.
Exchange Act means the Securities Exchange Act of 1934, as amended, and the
rules and regulations promulgated thereunder.
Excluded Event means (i) any Change in the United States or foreign economies
or securities or financial markets generally (including any decline in the price of securities generally or any market or index); (ii) any Change that generally affects any industry in which the Debtors operate; (iii) general business or economic conditions in any of the geographical areas in which any of the Debtors operate; (iv) the occurrence of any act of God or other calamity or force majeure event (whether or not declared as such), including any strike, labor dispute, civil disturbance, embargo, natural disaster, fire, flood, hurricane, tornado, or other weather event, or any global health conditions (including any epidemic, pandemic, or other outbreak of illness, including as a result of the COVID-19 pandemic or other disease or virus, or any actions by a Governmental Unit related to the foregoing); (v) national or international political or social conditions, including any Change arising in connection with, hostilities, acts of war, cyber-attack, sabotage or terrorism or military actions or any escalation or material worsening of any such hostilities, acts of war, cyber-attack, sabotage or terrorism or military actions, whether commenced before or after the date hereof and whether or not pursuant to the declaration of a national emergency or war; (vi) any actions required to be taken or omitted by the Debtors pursuant to the Plan or any other Definitive Document or Acquisition Agreement or actions taken or omitted to be taken by the Debtors at the request or with the consent of the Requisite Consenting Creditors; (vii) any Changes in applicable laws or U.S. generally accepted accounting principles (or other relevant accounting rules); (viii) any Change resulting from the filing or pendency of the Chapter 11 Cases, actions taken in connection with the Bankruptcy Cases that do not violate the Plan, any of the Definitive Documents, or the Acquisition Agreement, or any reasonably anticipated effects of such filing, pendency or actions; or (ix) any Change resulting from the public announcement of the Plan, compliance with terms of the Plan or the consummation of the Restructuring Transactions; provided further, that the exceptions set forth in clauses (i) through (v) and clause (vii) of this definition shall not be regarded as an Excluded Event solely to the extent that any such described Change has a disproportionate impact on the Debtors, as compared to other companies similarly situated in the industries in which the Debtors operate.
Exculpated Parties means collectively, (i) the Debtors, (ii) the Reorganized
Debtors, (iii) the Consenting Creditors, (iv) the members of the Ad Hoc Lender Group, (v) the Exit Facility Agent, (vi) the Exit Facility Lenders, (vii) the Exit Facility Backstop Parties (viii) the DIP Agent, (ix) the DIP Facility Lenders, (x) the First Lien Administrative Agent, (xi) AcquisitionCo (if applicable), (xii) CEC Holdings (if applicable), (xiii) the Creditors’ Committee, (xiv) each member of the Creditors’ Committee in its capacity as such, (xv) with respect to each of the foregoing Persons in clauses (i) through (xiv), such Persons’ predecessors, successors, assigns, subsidiaries, affiliates, current and former officers and directors, principals, equity holders, members, partners, managers, employees, agents, advisory board members, financial advisors, attorneys, accountants, investment bankers, consultants, representatives, management companies, fund advisors, and other professionals, and such Persons’ respective heirs, executors, estates, and nominees, in each case in their capacity as such.
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Existing Queso Interest means any Interest in Queso.
Exit Credit Agreement means that certain credit agreement pursuant to which the
Exit Facility shall be provided, to be dated as of the Effective Date, by and among the Reorganized Debtors, CEC Holdings (if applicable), the Exit Facility Agent, and the Exit Facility Lenders.
Exit Facility means a $200 million first lien first out term loan facility, subject to
increase as necessary to repay the DIP Claims and fund the go-forward liquidity requirements of the Reorganized Debtors to be provided by the Exit Facility Lenders.
Exit Facility Agent means the administrative agent, collateral agent, or other
similar agent under the Exit Credit Agreement, solely in such Entity’s capacity as such.
Exit Facility Backstop Parties means the Initial Consenting Creditors set forth in
the Exit Facility Commitment Letter.
Exit Facility Commitment Letter means the letter allocating the backstop
commitments with respect to the Exit Facility to be delivered to the Debtors by the Initial Consenting Creditors that will be Exit Facility Backstop Parties pursuant to the terms of the Second Amended and Restated PSA.
Exit Facility Equity means 45% of the New Equity Interests, subject to dilution by the New Warrant Equity (if any) and the MIP Equity, to be distributed to the Exit Facility Lenders on a pro rata basis.
Exit Facility Lenders means the Consenting Creditors and any other lenders from
time to time party to the Exit Credit Agreement, including any permitted assignees thereof.
Exit Facility Put Option Premium means 5% of New Equity Interests, subject to dilution by the New Warrant Equity (if any) and the MIP Equity, due in connection with and pursuant to the terms of the Exit Facility Commitment Letter and the Exit Credit Agreement.
Fee Claim means a Claim for professional services rendered or costs incurred on
or after the Petition Date through the Effective Date by Professional Persons.
Fee Escrow Account means an interest-bearing account in an amount equal to the
total estimated amount of Fee Claims and funded by the Debtors on or before the Effective Date.
Final Order means an order, ruling, or judgment of the Bankruptcy Court (or other
court of competent jurisdiction) that (i) is in full force and effect, (ii) is not stayed, and (iii) is no longer subject to review, reversal, vacatur, modification, or amendment, whether by appeal or by writ of certiorari; provided, however, that the possibility that a motion under Rules 50 or 60 of the Federal Rules of Civil Procedure or any analogous Bankruptcy Rule (or any analogous rules applicable in such other court of competent jurisdiction) may be filed relating to such order, ruling, or judgment shall not cause such order, ruling, or judgment not to be a Final Order.
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First Lien Administrative Agent means Credit Suisse AG, Cayman Islands Branch,
as administrative agent under the First Lien Credit Agreement, together with any successor administrative agent.
First Lien Credit Agreement means that certain First Lien Credit Agreement, dated
as of August 30, 2019, by and among Queso, as holdings, CEC, as borrower, the First Lien Lenders, and the First Lien Administrative Agent, as my be amended, modified, or supplemented from time to time, and including all related credit documents.
First Lien Debt Claims means, collectively, the Revolver Claims, the Term Loan
Claims, and the Claims in respect of the other Obligations (as defined in the First Lien Credit Agreement).
First Lien Lenders means the lenders party to the First Lien Credit Agreement from
time to time, together with the other Secured Parties (as defined in the First Lien Credit Agreement).
General Unsecured Claim means any Claim, other than (i) a First Lien Debt Claim,
(ii) a Senior Unsecured Notes Claim, (iii) an Intercompany Claim, (iv) an Adequate Protection Claim, (v) an Administrative Expense Claim, (vi) a Priority Tax Claim, (vii) an Other Priority Claim, (viii) an Other Secured Claim, or (ix) a DIP Claim.
Governmental Unit has the meaning set forth in section 101(27) of the Bankruptcy
Code.
GUC Cash Pool means Cash in an amount of $5.5 million to be transferred to the
GUC Trust on the Effective Date and administered by the GUC Trustee for purposes of (i) satisfying the obligations of the GUC Trust, including the GUC Trust Expenses and (ii) making distributions to GUC Trust Beneficiaries in accordance with the GUC Trust Agreement and Section 4.5 and 5.14 of the Plan.
GUC Trust means that certain trust to be established on the Effective Date, in
accordance with the GUC Trust Agreement and Section 5.14 of the Plan, to administer, process, settle, resolve, liquidate, satisfy, and pay General Unsecured Claims.
GUC Trust Agreement means that certain trust agreement that, among other things,
establishes and governs the GUC Trust, which agreement shall be in form and substance reasonably acceptable to the Debtors, the Creditors’ Committee, and the Requisite Consenting Creditors.
GUC Trust Assets means the GUC Cash Pool and any proceeds thereof.
GUC Trust Beneficiaries means the holders of Allowed General Unsecured
Claims.
GUC Trust Expenses means all reasonable and documented fees, expenses, and
costs incurred by the GUC Trustee in connection with carrying out the obligations of the GUC Trust and otherwise in accordance with the GUC Trust Agreement, including costs related to the
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maintenance or disposition of the GUC Trust Assets as well as indemnity reserves, attorneys’ fees, the fees of other professionals and other Persons retained by the GUC Trustee, and any taxes imposed on the GUC Trust or in respect of the GUC Trust Assets.
GUC Trust Interests means the non-certificated and non-transferable beneficial
interests in the GUC Trust that shall entitle the holder thereof to the distributions of the GUC Trust Assets which shall be made pursuant to the GUC Trust Agreement and the Plan.
GUC Trustee means the Person to be appointed by the Creditors’ Committee and
reasonably acceptable to the Debtors pursuant the Plan and the GUC Trust Agreement and identified in the Plan Supplement to, among other things, (i) act as trustee of the GUC Trust, (ii) manage the GUC Trust Assets, (iii) administer, dispute, object to, compromise, or otherwise resolve all General Unsecured Claims, (iv) make distributions from the GUC Trust Assets to GUC Trust Beneficiaries, and (v) manage and administer the Disputed Claims Reserve.
Impaired means, with respect to a Claim, Interest, or a Class of Claims or Interests,
“impaired” within the meaning of such term in section 1124 of the Bankruptcy Code.
Indemnification Obligation means any existing or future obligation of any Debtor
to indemnify current and former directors, officers, members, managers, agents, or employees of any of the Debtors who served in such capacity, with respect to or based upon such service or any act or omission taken or not taken in any of such capacities, or for or on behalf of any Debtor, whether pursuant to agreement, the Debtors’ respective memoranda, articles or certificates of incorporation, corporate charters, bylaws, operating agreements, limited liability company agreements, or similar corporate or organizational documents or other applicable contract or law in effect as of the Effective Date.
Initial Additional Consenting Creditors has the meaning set forth in the Second
Amended and Restated PSA.
Initial Consenting Creditors has the meaning set forth in the Second Amended and
Restated PSA.
Initial GUC Distribution Date means the date occurring as soon as reasonably
practicable after the Effective Date when Plan Distributions commence to the holders of Allowed General Unsecured Claims.
Insurance Contracts means all insurance policies issued to the Debtors or under
which the Debtors have sought or may seek coverage at any time, including workers’ compensation policies and the D&O Policies, and all agreements, documents, or instruments related thereto.
Insurer means any company, third party administrator, or other non-Debtor Entity
that issued or entered into an Insurance Contract and any respective predecessors or successors of any of the foregoing.
Intercompany Claim means any Claim against a Debtor held by another Debtor or
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Intercompany Interest means an Interest in a Debtor held by another Debtor. Interest means any equity security (as defined in section 101(16) of the Bankruptcy
Code) in any of the Debtors, and any other security or equity interest in any of the Debtors, including all ordinary shares, units, common stock, preferred stock, membership interest, partnership interest or other instrument, evidencing any fixed or contingent ownership interest in any of the Debtors, whether or not transferable and whether fully vested or vesting in the future, including any option, warrant, or other right, contractual or otherwise, to acquire any such interest in the Debtors, that existed immediately before the Effective Date, and including any equity interest issued to any of the Debtors’ current or former employees and non-employee directors various forms of long-term incentive compensation, including stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares/units, incentive awards, Cash awards, and other stock-based awards.
Lien has the meaning set forth in section 101(37) of the Bankruptcy Code.
MIP means a post-emergence management incentive plan to be established on or
after the Effective Date, but in no event later than thirty (30) days after the Effective Date, by the New Board.
MIP Equity means up to 10% of the New Equity Interests on a fully diluted basis
available for issuance pursuant to the MIP.
New Board means the initial board of directors of Reorganized Queso or CEC
Holdings, as applicable.
New Corporate Governance Documents means the certificate of incorporation,
certificate of formation, bylaws, limited liability company agreements, Shareholders Agreement (if any), operating agreement or other similar organizational or formation documents, as applicable, and registration rights agreement (if any) of the Reorganized Debtors or CEC Holdings, as applicable, which shall be reasonably acceptable to the Debtors and acceptable to the Requisite Consenting Creditors.
New Equity Interests means the equity interests of Reorganized Queso or CEC
Holdings, as applicable, to be distributed on the Effective Date or as permitted pursuant to the Plan and the New Corporate Governance Documents.
New Second-Out Credit Agreement means the amended and restated credit
agreement governing the New Second-Out Term Loan Facility, to be dated as of the Effective Date, by and among the Reorganized Debtors, CEC Holdings (if applicable), the New Second-Out Term Loan Lenders, and the other parties thereto.
New Second-Out Term Loan means the loan under the New Second-Out Term
Loan Facility.
New Second-Out Term Loan Facility means a $175 million first lien second-out
term loan facility with a seven (7) year maturity and bearing interest at a rate of, at the Reorganized Debtors’ election, (i) LIBOR + 650 basis points, paid in Cash or (ii) at any time during the first
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two (2) years following the Effective Date, LIBOR + 150 basis points, paid in Cash, plus 550 basis points, paid in kind, with a LIBOR floor of 100 basis points.
New Second-Out Term Loan Lenders means the holders of First Lien Debt Claims
receiving the New Second-Out Term Loan in accordance with Section 4.3 of the Plan that are deemed party to the New Second-Out Credit Agreement as of the Effective Date.
New Warrants means warrants for 10% of the New Equity Interests (subject to
dilution by the MIP Equity), which shall be struck at an equity value of Reorganized Queso or CEC Holdings, as applicable, of $875 million, have a five (5) year term, and have no Black-Scholes protection and no economic anti-dilution protection, to be issued pursuant to the Plan.
New Warrant Agreement means a warrant agreement to be entered into by CEC
Holdings or Reorganized Queso, as applicable, and the warrant agent named therein that shall govern the terms of the New Warrants.
New Warrant Equity means the New Equity Interests issuable upon the exercise of
the New Warrants, which shall be subject to dilution by the MIP Equity.
Non-Compensatory Penalty Claim means any Claim for a fine, penalty, or
forfeiture or for multiple, exemplary, or punitive damages, to the extent such fine, penalty, forfeiture, or damages are not compensation for actual pecuniary loss suffered by the holder of such Claim.
Noteholder Additional Consenting Creditors has the meaning set forth in the
Second Amended and Restated PSA.
Original PSA means the Plan Support Agreement, dated as of September 4, 2020,
by and among the Debtors and the other parties signatory thereto (as amended, supplemented, or otherwise modified from time to time) [Docket No. 800, Exhibit A].
Other Priority Claim means any Claim other than an Administrative Expense
Claim or a Priority Tax Claim that is entitled to priority of payment as specified in section 507(a) of the Bankruptcy Code.
Other Secured Claim means any Secured Claim against a Debtor other than a
Priority Tax Claim, a DIP Claim, or a First Lien Debt Claim.
Person means an individual, corporation, partnership, joint venture, association,
joint stock company, limited liability company, limited liability partnership, trust, estate, unincorporated organization, Governmental Unit, or other Entity.
Petition Date means, with respect to a Debtor, the date on which such Debtor
commenced its Chapter 11 Case.
Plan means this joint chapter 11 plan, including all appendices, exhibits, schedules,
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contained in the Plan Supplement), as may be modified from time to time in accordance with the Bankruptcy Code, the terms hereof, and of the Second Amended and Restated PSA.
Plan Distribution means the payment or distribution of consideration to holders of
Allowed Claims and, if applicable, Allowed Interests under the Plan.
Plan Supplement means a supplement or supplements to the Plan containing
certain documents and forms of documents, schedules, and exhibits relevant to the implementation of the Plan, to be filed with the Bankruptcy Court, as amended, modified, or supplemented from time to time in accordance with the terms hereof and in accordance with the Bankruptcy Code and the Bankruptcy Rules, which shall include, but not be limited to, but in each case to the extent applicable, (i) the New Corporate Governance Documents of CEC Holdings or Reorganized Queso, as applicable, (ii) the number and slate of directors to be appointed to the New Board to the extent known and determined, (iii) with respect to the members of the New Board known and determined, information required to be disclosed in accordance with section 1129(a)(5) of the Bankruptcy Code, (iv) the Exit Facility documents, (v) the New Second-Out Term Loan documents, (vi) the New Warrant Agreement, (vii) a schedule of retained Causes of Action, (viii) the Schedule of Rejected Contracts, (ix) the registration rights agreement (if any) of Reorganized Queso or CEC Holdings, as applicable, (x) the form of GUC Trust Agreement, and (xi) the identity of the GUC Trustee.
Potential Alternative Transaction means any actionable proposal from a
third-party for transactions that would provide consideration to the Debtors’ Estates in an amount equal to or greater than $875 million.
Priority Tax Claim means any Secured Claim or unsecured Claim of a
Governmental Unit of the kind entitled to priority of payment as specified in sections 502(i) and 507(a)(8) of the Bankruptcy Code.
Pro Rata Share means the proportion that an Allowed Claim or Interest in a
particular Class bears to the aggregate amount of all Allowed Claims or Interests in that Class.
Professional Person means any Person retained by order of the Bankruptcy Court
in connection with these Chapter 11 Cases pursuant to sections 327, 328, 330, 331, 503(b), or 1103 of the Bankruptcy Code, excluding any ordinary course professional retained pursuant to an order of the Bankruptcy Court.
Purchase Transaction means the transactions described in Exhibit G to the
Disclosure Statement, which shall be reasonably acceptable to the Debtors and the Requisite Consenting Creditors.
Purchase Transaction Documents means (i) the Acquisition Agreement, (ii) a tax
allocation agreement to be entered into between CEC (or such other designated Debtor) and Queso (pursuant to which, among other things, CEC (or such other designated Debtor) will (a) control all tax matters of Queso and the consolidated group of corporations of which Queso is the common parent for federal income tax purposes (including the preparation of any tax returns and control of all tax proceedings) for all taxable years through the liquidation of Queso, (b) assume and pay all tax liabilities of Queso through the dissolution of Queso that are not discharged, released or
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otherwise satisfied pursuant to the Plan, and (c) be entitled to any and all tax refunds, credits or similar tax assets that relate to the tax consolidated group) and/or (iii) any other documents setting forth the definitive terms of the Purchase Transaction.
Purchase Transaction Election Date means the date that is three (3) Business Days
prior to the date the Plan Supplement is required to be filed.
Quarterly Distribution Date means (i) the first Business Day that is ninety (90)
days after the Effective Date and (ii) each subsequent Business Day that is ninety (90) days thereafter.
Queso means Queso Holdings Inc.
Released Parties means, collectively, and in each case, solely in their respective
capacities as such, (i) the Debtors, (ii) the Reorganized Debtors, (iii) the Consenting Creditors, (iv) the members of the Ad Hoc Lender Group, (v) the Exit Facility Agent, (vi) the Exit Facility Lenders, (vii) the Exit Facility Backstop Parties (viii) the DIP Agent, (ix) the DIP Facility Lenders, (x) the First Lien Administrative Agent, (xi) the Senior Unsecured Notes Trustee; (xii) AcquisitionCo (if applicable), (xiii) CEC Holdings (if applicable), (xiv) the Creditors’ Committee, (xv) each member of the Creditors’ Committee in its capacity as such, and (xvi) with respect to each of the foregoing Persons, in clauses (i) through (xv), each of their affiliates, predecessors, successors, assigns, and subsidiaries, as well as each of the current and former officers and directors, principals, equity holders, members, partners, managers, employees, agents, advisory board members, financial advisors, attorneys, accountants, investment bankers, consultants, representatives, management companies, fund advisors, and other professionals of each of the foregoing, and such Persons’ respective heirs, executors, estates, and nominees, in each case in their respective capacities as such.
Releasing Parties means collectively, and in each case, solely in their respective
capacities as such, (i) the holders of all Claims that vote to accept the Plan, (ii) the holders of all Claims whose vote to accept or reject the Plan is solicited but that do not vote either to accept or to reject the Plan, (iii) the holders of all Claims that vote, or are deemed, to reject the Plan but do not opt out of granting the releases set forth in the Plan, (iv) the holders of all Claims and Interests that were given notice of the opportunity to opt out of granting the releases set forth in the Plan but did not opt out, and (v) the Released Parties.
Reorganized CEC means CEC as reorganized on the Effective Date in accordance
with the Plan.
Reorganized Debtors means each of the Debtors as reorganized on the Effective
Date in accordance with the Plan and, following consummation of the Purchase Transaction (if applicable) AcquisitionCo.
Reorganized Queso means Queso as reorganized on the Effective Date in
accordance with the Plan.
Requisite Consenting Creditors has the meaning set forth in the Second Amended
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Requisite Supermajority of Consenting Creditors has the meaning set forth in the
Second Amended and Restated PSA.
Restructuring means the financial restructuring of the Debtors, the principal terms
of which are set forth in the Plan, the Second Amended and Restated PSA, and the Plan Supplement.
Restructuring Term Sheet mean that certain restructuring term sheet, dated
October 21, 2020, attached as Exhibit A to the Second Amended and Restated PSA.
Restructuring Transactions means one or more transactions pursuant to section
1123(a)(5)(D) of the Bankruptcy Code to occur on the Effective Date or as soon as reasonably practicable thereafter, that may be necessary or appropriate to effect any transaction described in, approved by, contemplated by, or necessary to effectuate the Plan, in each case with the reasonable consent of the Requisite Consenting Creditors, including (i) the consummation of the transactions provided for under or contemplated by the Plan, the Second Amended and Restated PSA, the Restructuring Term Sheet, and one or more Acquisition Agreements (if any), (ii) the execution and delivery of appropriate agreements or other documents containing terms that are consistent with or reasonably necessary to implement the terms of the Plan, the Second Amended and Restated PSA, the Restructuring Term Sheet, and one or more Acquisition Agreements (if any), and that satisfy the requirements of applicable law, (iii) the execution and delivery of appropriate instruments of transfer, assignment, assumption, or delegation of any property, right, liability, duty, or obligation on terms consistent with the terms of the Plan, the Second Amended and Restated PSA, one or more Acquisition Agreements (if any), and the Restructuring Term Sheet, (iv) if applicable, the Purchase Transaction, and (v) all other actions that the Debtors or Reorganized Debtors, as applicable, the Requisite Consenting Creditors determine are necessary or appropriate and consistent with the Second Amended and Restated PSA, the Acquisition Agreement (if any), and the Restructuring Term Sheet.
Revolver Claim means a Claim on account of the revolving loans under the
revolving loan facility under the First Lien Credit Agreement, excluding any unfunded letter of credit obligations, plus accrued and unpaid interest, fees, and other amounts arising and payable with respect thereto.
Schedule of Rejected Contracts means the schedule of executory contracts and
unexpired leases to be rejected by the Debtors pursuant to the Plan, if any, as the same may be amended, modified, or supplemented from time to time.
Schedules means the schedules of assets and liabilities, schedules of executory
contracts and unexpired leases, and statements of financial affairs filed by the Debtors pursuant to section 521 of the Bankruptcy Code.
Second Amended and Restated PSA means the Second Amended and Restated
Plan Support Agreement, dated as of October 21, 2020, by and among the Debtors and the other parties signatory thereto (as amended, supplemented, or otherwise modified from time to time).
Secured Claim means a Claim (i) secured by a lien on collateral to the extent of the
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the Debtors, or (c) determined by a Final Order in accordance with section 506(a) of the Bankruptcy Code, or (ii) secured by the amount of any right of setoff of the holder thereof in accordance with section 553 of the Bankruptcy Code.
Securities Act means the Securities Act of 1933, as amended, 15 U.S.C. §§ 77a–
77aa, and the rules and regulations promulgated thereunder.
Senior Unsecured Notes means the 8.000% senior unsecured notes due 2022 issued
under the Senior Unsecured Notes Indenture.
Senior Unsecured Notes Claims means all Claims arising from, or related to, the
Senior Unsecured Notes, including accrued and unpaid interest, fees, and other amounts arising and payable with respect thereto.
Senior Unsecured Notes Indenture means that certain Indenture, dated as of
February 19, 2014 (as amended, modified, or supplemented from time to time, and including the first through fifth supplemental indentures), by and among CEC, as issuer, the subsidiary guarantors party thereto from time to time, and the Senior Unsecured Notes Trustee.
Senior Unsecured Notes Trustee means Wilmington Trust, National Association. Senior Unsecured Notes Trustee Charging Lien means any Lien or other priority
in payment in favor of the Senior Unsecured Notes Trustee against distributions to be made to holders of Allowed Senior Unsecured Notes Claims for payment of any Senior Unsecured Notes Trustee Fees and Expenses.
Senior Unsecured Notes Trustee Fees and Expenses means the reasonable and
documented compensation, fees, expenses, and disbursements incurred by Wilmington Trust, National Association, as Senior Unsecured Notes Trustee, including attorneys’ and agents’ fees, expenses and disbursements, whether prior to or after the Petition Date and whether prior to or after the Effective Date, to the extent payable or reimbursable under the Senior Unsecured Notes Indenture.
Shareholders Agreement means the shareholders agreement or limited liability
company agreement, as applicable, to be entered into (or deemed entered into) by Reorganized Queso or CEC Holdings, as applicable, and the holders of the New Equity Interests issued on the Effective Date in accordance with the Plan.
Statutory Fees means all fees and charges assessed against the Estates pursuant to
sections 1911 through 1930 of chapter 123 of title 28 of the United States Code.
Subordinated Claim means a Claim that is (i) subject to subordination in
accordance with sections 510(b)-(c) of the Bankruptcy Code or otherwise or (ii) a Non-Compensatory Penalty Claim.
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Term Loan Claim means a Claim arising under the term loan facility under the
First Lien Credit Agreement, plus accrued and unpaid interest, fees, and other amounts arising and payable with respect thereto.
Unimpaired means, with respect to a Claim, Interest, or Class of Claims or
Interests, not “impaired” within the meaning of sections 1123(a)(4) and 1124(2) of the Bankruptcy Code.
U.S. Trustee means the United States Trustee for Region 7.
1.2 Interpretation; Application of Definitions; Rules of Construction.
Unless otherwise specified, all section or exhibit references in the Plan are to the respective section in or exhibit to the Plan, as the same may be amended, waived, or modified from time to time in accordance with the terms hereof. The words “herein,” “hereof,” “hereto,” “hereunder,” and other words of similar import refer to the Plan as a whole and not to any particular section, subsection, or clause contained therein and have the same meaning as “in the Plan,” “of the Plan,” “to the Plan,” and “under the Plan,” respectively. The words “includes” and “including” are not limiting. The headings in the Plan are for convenience of reference only and shall not limit or otherwise affect the provisions hereof. For purposes herein: (i) in the appropriate context, each term, whether stated in the singular or plural, shall include both the singular and plural, and pronouns stated in the masculine, feminine, or neuter gender shall include the masculine, feminine, and the neuter gender; (ii) any reference herein to a contract, lease, instrument, release, indenture, or other agreement or document being in a particular form or on particular terms and conditions means that the referenced document shall be substantially in that form or substantially on those terms and conditions; (iii) the rules of construction set forth in section 102 of the Bankruptcy Code shall apply; and (iv) any term used in capitalized form herein that is not otherwise defined but that is used in the Bankruptcy Code or the Bankruptcy Rules shall have the meaning assigned to that term in the Bankruptcy Code or the Bankruptcy Rules, as the case may be.
1.3 Reference to Monetary Figures.
All references in the Plan to monetary figures shall refer to the legal tender of the United States of America unless otherwise expressly provided.
1.4 Consent Rights of Consenting Creditors.
Notwithstanding anything herein to the contrary, any and all notice and applicable consent rights of the Debtors and the Consenting Creditors to the extent set forth in the Second Amended and Restated PSA (including the exhibits thereto) with respect to the form and substance of this Plan, and any other Definitive Documents, including any amendments, restatements, supplements, or other modifications to such documents, and any and all consents, waivers, or other deviations under or from any such documents, shall be incorporated herein by this reference and fully enforceable as if stated in full herein.
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1.5 Controlling Document.
In the event of an inconsistency between the Plan and the Plan Supplement, the terms of the relevant document in the Plan Supplement shall control unless otherwise specified in such Plan Supplement document. In the event of an inconsistency between the Plan and any other instrument or document created or executed pursuant to the Plan, or between the Plan and the Disclosure Statement, the Plan shall control. The provisions of the Plan and of the Confirmation Order shall be construed in a manner consistent with each other so as to effectuate the purposes of each; provided, however, that if there is determined to be any inconsistency between any provision of the Plan and any provision of the Confirmation Order that cannot be so reconciled, then, solely to the extent of such inconsistency, the provisions of the Confirmation Order shall govern, and any such provisions of the Confirmation Order shall be deemed a modification of the Plan.
ARTICLE II. ADMINISTRATIVE EXPENSE CLAIMS, FEE CLAIMS, DIP CLAIMS, AND PRIORITY TAX CLAIMS.
2.1 Treatment of Administrative Expense Claims and Priority Tax Claims.
(a) Except to the extent that a holder of an Allowed Administrative Expense Claim agrees to a different treatment, each holder of an Allowed Administrative Expense Claim (other than Fee Claims) shall receive from the Debtors or the Reorganized Debtors, in full and final satisfaction of such Claim, on or as soon as reasonably practicable after the later of (i) the Effective Date and (ii) the first Business Day that is thirty (30) calendar days after the date such Administrative Expense Claim becomes an Allowed Administrative Expense Claim, Cash in an amount equal to such Allowed Administrative Expense Claim; provided, however, that Allowed Administrative Expense Claims representing liabilities incurred in the ordinary course of business by the Debtors shall be paid by the Debtors or the Reorganized Debtors, as applicable, in the ordinary course of business, consistent with past practice and in accordance with the terms and subject to the conditions of any orders or agreements governing, instruments evidencing, or other documents establishing, such liabilities.
(b) Except with respect to Fee Claims and Administrative Expense Claims that arose in the ordinary course of business during the Chapter 11 Cases, as set forth in Section 2.1(a) of the Plan, requests for payment of Allowed Administrative Expense Claims must be filed pursuant to the procedures specified in the Confirmation Order and any notice related thereto no later than the Administrative Expense Claims Bar Date.
2.2 Treatment of Fee Claims.
(a) All Professional Persons seeking approval by the Bankruptcy Court of compensation for services rendered or reimbursement of expenses incurred through and including the Effective Date under sections 327, 328, 330, 331, 503(b)(2), 503(b)(3), 503(b)(4), 503(b)(5), or 1103 of the Bankruptcy Code shall (i) file, on or before the date that is forty five (45) days after the Effective Date, their respective applications for final allowances of compensation for services rendered and reimbursement of expenses incurred and (ii) be paid in full, in Cash, in such amounts as are Allowed by the Bankruptcy Court or authorized to be paid in accordance with the order(s) relating to or allowing any such Fee Claim. The Debtors are authorized to pay compensation for
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professional services rendered and reimbursement of expenses incurred after the Effective Date in the ordinary course and without the need for Bankruptcy Court approval.
(b) On or prior to the Effective Date, the Debtors shall establish and fund the Fee Escrow Account. The Debtors shall fund the Fee Escrow Account with Cash equal to the Professional Persons’ good faith estimates of the Fee Claims. Funds held in the Fee Escrow Account shall not be considered property of the Debtors’ Estates or property of the Reorganized Debtors, but shall revert to the Reorganized Debtors only after all Fee Claims allowed by the Bankruptcy Court have been irrevocably paid in full. The Fee Escrow Account shall be held in trust for Professional Persons and for no other parties until all Fee Claims Allowed by the Bankruptcy Court have been paid in full. Fee Claims owing to the applicable Professional Persons shall be paid in full, in Cash, to such Professional Persons from funds held in the Fee Escrow Account when such Claims are Allowed by an order of the Bankruptcy Court or authorized to be paid under the Corrected Order Establishing Procedures for Interim Compensation and Reimbursement of Expenses of Professionals [Docket No. 727]. The Reorganized Debtors’ obligations with respect to Fee Claims shall not be limited by nor deemed limited to the balance of funds held in the Fee Escrow Account. To the extent that funds held in the Fee Escrow Account are insufficient to satisfy the amount of accrued Fee Claims owing to the Professional Persons, such Professional Persons shall have an Allowed Administrative Expense Claim for any such deficiency, which shall be satisfied in accordance with Section 2.1 of the Plan. No Liens, claims, or interests shall encumber the Professional Fee Escrow in any way, other than customary liens in favor of the depository bank at which the Fee Escrow is maintained.
(c) Any objections to Fee Claims shall be served and filed (i) no later than twenty-one (21) days after the filing of the final applications for compensation or reimbursement or (ii) such later date as ordered by the Bankruptcy Court.
2.3 Treatment of Priority Tax Claims.
Except to the extent that a holder of an Allowed Priority Tax Claim agrees to a different treatment, each holder of an Allowed Priority Tax Claim shall receive, in full and final satisfaction of such Allowed Priority Tax Claim, at the sole option of the Debtors or the Reorganized Debtors, as applicable, (i) Cash in an amount equal to such Allowed Priority Tax Claim on or as soon as reasonably practicable after the later of (a) the Effective Date, (b) the first Business Day that is thirty (30) calendar days after the date such Priority Tax Claim becomes an Allowed Priority Tax Claim, and (c) the date such Allowed Priority Tax Claim is due and payable in the ordinary course, or (ii) such other treatment consistent with the provisions of section 1129(a)(9) of the Bankruptcy Code.
2.4 Treatment of DIP Claims.
Except to the extent that a holder of an Allowed DIP Claim agrees to a less favorable treatment, on the Effective Date, each holder of an Allowed DIP Claim shall receive payment in Cash of the full amount of such Allowed DIP Claim in full and final satisfaction of such Allowed DIP Claim. Upon the indefeasible payment or satisfaction in full in Cash, or other satisfactory treatment, of the DIP Claims in accordance with the terms of the Plan, on the Effective
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Date, all Liens granted to secure such obligations shall be terminated and of no further force and effect.
2.5 Payment of Fees and Expenses Under DIP Order.
On the later of (i) the Effective Date and (ii) the date on which such fees, expenses, or disbursements would be required to be paid under the terms of the DIP Order, the Debtors or the Reorganized Debtors (as applicable) shall pay all fees, expenses, and disbursements of the DIP Agent and otherwise required to be paid under or pursuant to the applicable DIP Order. All payments of fees, expenses, or disbursements pursuant to this Section 2.5 shall be subject in all respects to the terms of the applicable DIP Order.
2.6 Treatment of Adequate Protection Claims.
On the Effective Date, to the extent of any Diminution in Value (as defined in the DIP Order), except to the extent that a holder of an Allowed Adequate Protection Claim agrees to less favorable treatment, each holder of an Allowed Adequate Protection Claim shall be deemed fully and finally satisfied by the distributions made to the First Lien Lenders on account of their First Lien Debt Claims as set forth in Section 4.3 of the Plan.
ARTICLE III. CLASSIFICATION OF CLAIMS AND INTERESTS. 3.1 Classification in General.
A Claim or Interest is placed in a particular Class for all purposes, including voting, confirmation, and distribution under the Plan and under sections 1122 and 1123(a)(1) of the Bankruptcy Code; provided, however, that a Claim or Interest is placed in a particular Class for the purpose of receiving distributions pursuant to the Plan only to the extent that such Claim or Interest is an Allowed Claim or Allowed Interest in that Class and such Claim or Interest has not been satisfied, released, or otherwise settled prior to the Effective Date.
3.2 Formation of Debtor Groups for Convenience Only.
The Plan groups the Debtors together solely for the purpose of describing treatment under the Plan, tabulating votes on and confirmation of the Plan, and making Plan Distributions in respect of Claims against and Interests in the Debtors under the Plan. Such groupings shall not affect any Debtor’s status as a separate legal entity, change the organizational structure of the Debtors’ business enterprise, constitute a change of control of any Debtor for any purpose, cause a merger of consolidation of any legal entities, or cause the transfer of any Assets. Except as otherwise provided by or permitted under the Plan, all Debtors shall continue to exist as separate legal entities.
3.3 Summary of Classification of Claims and Interests.
The following table designates the Classes of Claims against and Interests in the Debtors and specifies which Classes are (i) Impaired and Unimpaired under the Plan, (ii) entitled to vote to accept or reject the Plan in accordance with section 1126 of the Bankruptcy Code, and (iii) presumed to accept or deemed to reject the Plan. In accordance with section 1123(a)(1) of the
