Lucky’s Market Parent Company, LLC – With December 23rd Confirmation Looming, Court Grants “Abundance of Caution” Plan Exclusivity Extensions

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December 9, 2020 – The Court hearing the Lucky’s Market Parent Company cases has extended the periods during which the Debtors have an exclusive right to file a Chapter 11 Plan, and solicit acceptances thereof, through and including January 15, 2021 and March 15, 2021, respectively [Docket No. 1322]. Absent the requested relief, the Plan filing and solicitation dates expire on November 30, 2020 and January 28, 2021, respectively.

Following asset sales ($50.4mn of aggregate proceeds) and store-closing sales ($23.1mn), the Court approved the adequacy of the Debtors’ Disclosure Statement on November 24th and scheduled a Plan confirmation hearing for December 23, 2020. The Debtors said the proposed extension is largely precautionary, designed to give them more time to complete the Plan process if confirmation is delayed.

The motion [Docket No. 1281] notes, “The Debtors have worked cooperatively with the Prepetition Secured Lender and the Committee to assure a favorable outcome of these Chapter 11 Cases for all of the Debtors’ creditor constituencies. That process has culminated in a global settlement between the Debtors, the Prepetition Secured Lender and the Committee that is encompassed in a liquidating chapter 11 plan that will provide a return to creditors. On October 29, 2020, the Debtors filed the Joint Chapter 11 Plan of Liquidation of Lucky’s Market Parent Company, LLC and Its Debtor Affiliates [Docket No. 1154]…

Granting the Debtors additional time to work on soliciting acceptance of the Plan and pursuing confirmation of the Plan will benefit all parties in interest. The Debtors hope that this will be the final request to extend the Exclusive Periods and seek the extension out of an abundance of caution in the event that the confirmation process is delayed.”

Asset Sales and Store Closings

The Disclosure Statement provides: “Prior to and since the commencement of the Chapter 11 Cases, the Debtors have been engaged in a marketing process to monetize substantially all of their assets. Through their professionals, including PJ Solomon, Great American, and CBRE, the Debtors’ marketing efforts resulted in an increase of the value of their Estates by at least $50,383,272…. As [additionally] the Debtors conducted ‘going out of business,’ ‘store closing,’ ‘everything must go,’ or similarly themed sales or dispositions of the Debtors’ assets and inventory at thirty-three (33) Stores….the Debtors and Great American [also] sold certain of the Debtors’ FF&E at twenty-one (21) Stores. In total, the Debtors’ increased the value of their Estates through these sales by approximately $23,113,272."

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