Under terms of the new confirmation plan, Payless priority claims would be paid in full; first lien secured claims will collect $506.3 million plus control 91% of the new equity and have a pro rata share of the new $280 million loan to fund the company going forward. Second lien holders will receive $145 million plus the remaining 9% of the new equity; however that percentage will ultimately be diluted by the equity stake reserved for management that will be 6-10% of the total.

Unsecured creditors will get a pro rata share of the recovery pool, but the amount in that ... Log in to view full article.