Item 1.03
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Bankruptcy or Receivership.
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Confirmation of the Plan of Reorganization
As previously disclosed, Pyxus International, Inc. (Pyxus) and its subsidiaries Alliance One International, LLC,
Alliance One North America, LLC, Alliance One Specialty Products, LLC and GSP Properties, LLC (collectively, the Debtors or the Company) filed voluntary petitions (the Chapter 11 Cases) under
chapter 11 of the U.S. Bankruptcy Code (the Bankruptcy Code) in the U.S. Bankruptcy Court for the District of Delaware (the Bankruptcy Court) to implement a prepackaged chapter 11 plan of reorganization to
effectuate a financial restructuring of the Companys debt.
On August 21, 2020, the Bankruptcy Court entered an order (the
Confirmation Order) pursuant to the Bankruptcy Code, which approved and confirmed the Amended Joint Prepackaged Chapter 11 Plan of Reorganization of Pyxus International, Inc. and Its Affiliated Debtors (as supplemented and amended,
the Plan). After the satisfaction or waiver of the conditions precedent of the Plan, the Debtors intend to effect the transactions contemplated by the Plan and emerge from chapter 11 protection. The Confirmation Order and Plan are
filed as Exhibit 2.1 and Exhibit 2.2 hereto, respectively, and incorporated herein by reference.
The Debtors currently expect
that the Effective Date of the Plan (as defined therein) will occur on or about August 24, 2020, although the Debtors can make no assurances as to when, or ultimately if, the Plan will become effective.
Features of the Plan of Reorganization
Pursuant to the Plan, the business assets and operations of the Company will vest in a new Virginia corporation, Pyxus Holdings, Inc., which
will be an indirect subsidiary of an additional Virginia corporation (New Pyxus) which will be renamed Pyxus International, Inc. upon completion of such transfer of assets and operations. Under the Plan, all suppliers, vendors,
employees, trade partners, foreign lenders and landlords will be unimpaired by the Plan and will be satisfied in full in the ordinary course of business, and the Companys existing trade and customer contracts and terms will be maintained. New
Pyxus will continue to operate the Companys business in the ordinary course.
Treatment of Claims and Interests
The Plan contemplates the following treatment of claims against and interest in the Company:
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Other Secured Claims will either (i) be paid in full in cash, (ii) be satisfied by delivery of
collateral securing any such Claim and payment of any required interest or (iii) be reinstated.
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Other Priority Claims will be paid in full in cash.
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Holders of First Lien Notes Claims will receive (i) payment in full in cash of all accrued and unpaid
interest on such First Lien Notes, and (ii) their pro rata share of the Exit Secured Notes.
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Holders of Second Lien Notes Claims will receive, at the Holders election, (i) their pro rata share of
Second Lien Notes Common Stock Pool or (ii) Cash equal to 2.00% of the principal amount of all Second Lien Notes beneficially owned by such Holder.
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Lenders under Foreign Credit Lines will be paid in the ordinary course of business in accordance with the terms
of the relevant agreement.
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General Unsecured Claims will be paid in the ordinary course of business.
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The existing common stock of Pyxus shall be discharged, cancelled, released, and extinguished and of no further
force or effect.
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