The arrangement was crucial to Planet's reorganization plan being accepted by Bankruptcy Judge Arthur B. Briskman, as Planet chairman Robert I. Earl had worked out repayment deals with all creditors except CTI until yesterday.
Briskman is expected to rule on Planet's reorganization plan Dec. 16 after the company files its amended disclosure statement Nov. 4. Earl and his lawyers couldn't be reached at GlobeSt.com's publication deadline. But real estate lawyers not related to the case tell GlobeSt.com the new deal with creditors assures some payment to all, even unsecured creditors who are owed $2.4 million.
Planet filed its second Chapter 11 petition Oct. 15, 2001, listing assets of $121 million and liabilities of $131 million. The company emerged from its first Chapter 11 filing in May 2000 after seeking protection in October 1999.
Planet's new plan will have previous bond holders receiving $20 million in new promissory notes and 51% of the company's equity which will operate as a private firm. This agreement erases $51 million of the total debt.
Other secured creditors will be repaid fully and receive stock in Planet Hollywood. Bay Harbor Management of New York will receive a 20% position; SouthTrust Bank; 11.5%.
A trust representing Planet founder Earl's family will hold 7.5% of the new stock; Earl will control 10%. The Earl Family Trust will continue to give a $2.5 million line of credit for the company's exit financing.
In a deal unrelated to the bankruptcy transactions, Central Florida Blood Bank expects to close its $12.5 million purchase this month with Chicago-based RREEF Funds of the former 108,000-sf Planet headquarters building and the 80,000-sf warehouse on John Young Parkway and Sand Lake Road in south Orlando.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more inforrmation visit Asset & Logo Licensing.
