New York – October 15, 2018 – Cooley advised the official committee of unsecured creditors of Claire’s Stores during its bankruptcy proceedings, in which the accessory retailer’s Chapter 11 plan of reorganization was recently approved. Cooley lawyers Cathy Hershcopf, Seth Van Aalten, Jonathan Bach, Ian Shapiro, Michael Klein and Robert Winning led the team advising the official committee of unsecured creditors.
“Cooley is thrilled to be part of delivering this tremendous result for unsecured creditors in the Claire’s Stores’ reorganization,” said Hershcopf.
Under the plan, confirmed September 21 by Judge Mary Walrath in Delaware, unsecured creditors will receive recoveries ranging from 15 to 70+ percent – a phenomenal result given that certain secured noteholders will only receive a 10 to 16 percent recovery.
Because of the restructuring, Claire’s Stores is positioned to emerge from bankruptcy with a management-driven business plan, a more nimble retail footprint and a cleaner balance sheet, with total leverage decreasing by more than $1.5 billion.
The proceedings were at times extremely contentious and the excellent result for the unsecured creditors follows the impactful use of multiple cross-disciplinary Cooley teams.
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