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At Home Group’s prearranged Chapter 11 restructuring filed 16 June is set to transfer ownership of the debtors to the lenders that support the restructuring support agreement, including Redwood Capital Management, Farallon Capital Management, and Anchorage Capital Advisors. Existing lenders are also providing the $600m DIP financing, which comprises $200m in new money, and a roll-up of $400m of existing senior debt.

The company has set aggressive milestones with a planned exit in October — and so far it does not appear that there would be any challenge to the pre-petition LME, the original intentional “double dip” transaction.

Judge J Kate Stickles has been assigned to the case. A first day hearing has not yet been set.

The Chapter 11 docket can be found on the 9fin platform.

Situation overview

Per the announcement, the RSA signatories includes the company’s private equity sponsor Hellman & Friedman, and approximately 96% of the company’s first lien debt. The plan is to delever and then operate on a go-forward basis owned by the lenders.

The terms of the prearranged plan will eliminate approximately $1.620bn of the existing funded debt. Also, on the effective date, the company will enter into an exit asset-based lending facility, which will be applied to refinance the prepetition ABL credit facility.