Select Staffing bankruptcy plan approved after 5 weeks
U.S. Bankruptcy Judge Kevin J. Carey today in Wilmington, Delaware, granted the company, formally known as Koosharem LLC, approval of the pre-packaged plan.
“This is why you pay your lawyers so much,” the judge said at the end of the hearing, to laughter from the attorneys in the courtroom.
The Santa Barbara, California-based company filed for bankruptcy on April 1, having already worked out terms of the reorganization and obtained support from its lenders for a plan to cut debt of more than $650 million to about $350 million by raising funds in an equity rights offering and issuing new debt.
Lenders holding 98 percent of about $492 million in first-lien secured term and revolving loan facilities voted in favor of the plan, while second-lien lenders owed about $159 million voted unanimously to accept the plan, Jeffrey N. Pomerantz, a lawyer for Select Staffing, said at the hearing.