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Joint Plan of Reorganization

 

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Title:

Joint Plan of Reorganization

Entities:

First Union National Bank; Heilig-Meyers Co.; Wachovia Bank, NA; Wachovia Securities Inc.; Wells Fargo Bank Minnesota, NA; Bank of America, NA; Akin, Gump, Strauss, Hauer & Feld LLP

Date:

2004

Size:

Preview shows 25KB of 203KB total

Price:

$74

ID:

#1188346

 

 

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Start of Preview


<SEQUENCE>2

<FILENAME>reorg.txt
<DESCRIPTION>DEBTORS' JOINT PLAN OF REORGANIZATION
<TEXT>
UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF VIRGINIA
Richmond Division

)
In re: ) Chapter 11 Cases
)
HEILIG-MEYERS COMPANY, et al., ) Case Nos. 00-34533
)
)
Debtors. ) Jointly Administered
)


JOINT PLAN OF REORGANIZATION
PROPOSED BY HEILIG-MEYERS COMPANY, ET AL., AND
THE OFFICIAL COMMITTEE OF UNSECURED CREDITORS
---------------------------------------------



<TABLE>
<S> <C>
---------------------------------------
Bruce H. Matson (Va. Bar No. 22874) Michael S. Stamer (admitted pro hac vice)
Katherine M. Mueller (Va. Bar No. 44302) Shuba Satyaprasad (admitted pro hac vice)
LECLAIR RYAN, a professional corporation AKIN GUMP STRAUSS HAUER & FELD LLP
707 East Main Street 590 Madison Avenue
11th Floor New York, New York 10022
Richmond, Virginia 23219 (212) 872-1000
(804) 783-2003
- and -
Counsel to Debtors
Robert S. Strauss Building
AKIN GUMP STRAUSS HAUER & FELD LLP
1333 New Hampshire Avenue, N.W.
Washington, D.C. 20036
(202) 887-4000

Counsel to the Official Committee Of Unsecured Creditors
<PAGE>
TABLE OF CONTENTS


ARTICLE I DEFINITIONS, RULES OF INTERPRETATION, AND COMPUTATION OF TIME...........................................4
1.1 "503 Deadline"..............................................................................4
1.2 "7.40% Notes"...............................................................................4
1.3 "7.40% Notes Indenture".....................................................................4
1.4 "7.60% Notes"...............................................................................4
1.5 "7.60% Notes Indenture".....................................................................4
1.6 "7.88% Notes"...............................................................................4
1.7 "7.88% Notes Indenture".....................................................................4
1.8 "Administrative Claims Bar Date"............................................................5
1.9 "Administrative Bar Date Order".............................................................5
1.10 "Administrative Claim"......................................................................5
1.11 "Administrative Claims Reserve".............................................................5
1.12 "Affiliates"................................................................................5
1.13 "Allowed Claim".............................................................................5
1.14 "Available Cash"............................................................................5
1.15 "Available New RoomStore Common Stock"......................................................6
1.16 "Ballot"....................................................................................6
1.17 "Bank Group Secured Notes"..................................................................6
1.18 "Bankruptcy Code"...........................................................................6
1.19 "Bankruptcy Court"..........................................................................6
1.20 "Bankruptcy Rules"..........................................................................6
1.21 "Bar Date"..................................................................................6
1.22 "Bar Date Order"............................................................................6
1.23 "Beneficiaries".............................................................................6
1.24 "Bondholder Secured Claims".................................................................6
1.25 "Business Day"..............................................................................6
1.26 "Cash"......................................................................................6
1.27 "Certificate"...............................................................................6
1.28 "Chapter 11 Case(s)"........................................................................7
1.29 "Claim".....................................................................................7
1.30 "Claimholder"...............................................................................7
1.31 "Claims Agent"..............................................................................7
1.32 "Claims Objection Deadline".................................................................7
1.33 "Class".....................................................................................7
1.34 "Class 5(b) Reallocation Amount"............................................................7
1.35 "Class 5(b) Reallocation Amount Formula"....................................................7
1.36 "Class 5(b) Trust Allocation"...............................................................7
1.37 "Class 5(c) Litigation Recovery Reallocation"...............................................7
1.38 "Class 5(c) Reallocation Amount"............................................................7
1.39 "Class 5(c) Reallocation Amount Formula"....................................................7
1.40 "Class 5(c) Trust Allocation"...............................................................7
1.41 "Confirmation Date".........................................................................7

i
<PAGE>

1.42 "Confirmation Hearing"......................................................................8
1.43 "Confirmation Order"........................................................................8
1.44 "Creditors' Committee"......................................................................8
1.45 "Cure"......................................................................................8
1.46 "Cure Claim"................................................................................8
1.47 "Cure Claim Submission Deadline"............................................................8
1.48 "Cure Claim Objection Deadline".............................................................8
1.49 "Debtor Subsidiaries".......................................................................8
1.50 "Debtors"...................................................................................8
1.51 "Debtors-in-Possession".....................................................................8
1.52 "Disallowed Claim"..........................................................................8
1.53 "Disclosure Statement"......................................................................8
1.54 "Disputed Administrative Claim".............................................................9
1.55 "Disputed Claim"............................................................................9
1.56 "Disputed Funded Debt Unsecured Claim"......................................................9
1.57 "Disputed Heilig Unsecured Claim"...........................................................9
1.58 "Disputed Other Priority Claim".............................................................9
1.59 "Disputed Other Secured Claim"..............................................................9
1.60 "Disputed RoomStore Unsecured Claim"........................................................9
1.61 "Distributions".............................................................................9
1.62 "Effective Date"............................................................................9
1.63 "Entity"....................................................................................9
1.64 "Estates"...................................................................................9
1.65 "Estate Action".............................................................................9
1.66 "Exchange Act".............................................................................10
1.67 "Exhibit"..................................................................................10
1.68 "Existing Securities"......................................................................10
1.69 "Final Order"..............................................................................10
1.70 "Funded Debt Unsecured Claim"..............................................................10
1.71 "Funded Debt Unsecured Claims Reserve".....................................................10
1.72 "Furniture Company"........................................................................10
1.73 "Heilig-Meyers"............................................................................10
1.74 "Heilig Unsecured Claim"...................................................................10
1.75 "Heilig Unsecured Claims Reserve"..........................................................10
1.76 "Impaired".................................................................................10
1.77 "Indentures"...............................................................................11
1.78 "Indenture Trustee"........................................................................11
1.79 "Indenture Trustee Fees"...................................................................11
1.80 "Initial Distribution Date"................................................................11
1.81 "Intercompany Claim".......................................................................11
1.82 "Interest".................................................................................11
1.83 "Interestholder"...........................................................................11
1.84 "Lender Avoidance Action"..................................................................11
1.85 "Liquidation Trust"........................................................................11
1.86 "Liquidation Trust Committee"..............................................................11
1.87 "Liquidation Trustee"......................................................................11

ii
<PAGE>

1.88 "MacSaver".................................................................................12
1.89 "MacSaver Unsecured Claim".................................................................12
1.90 "New RoomStore Common Stock"...............................................................12
1.91 "New Credit Facility"......................................................................12
1.92 "Old Common Stock".........................................................................12
1.93 "Other Priority Claim".....................................................................12
1.94 "Other Priority Claims Reserve"............................................................12
1.95 "Other Secured Claim"......................................................................12
1.96 "Other Secured Claim Reserve"..............................................................12
1.97 "Periodic Distribution Date"...............................................................12
1.98 "Person"...................................................................................12
1.99 "Petition Date"............................................................................13
1.100 "Plan".....................................................................................13
1.101 "Plan Schedules"...........................................................................13
1.102 "Plan Supplement"..........................................................................13
1.103 "Plan Supplement Filing Date"..............................................................13
1.104 "Post-Petition Interest"...................................................................13
1.105 "Pre-Petition Lenders".....................................................................13
1.106 "Priority Tax Claim".......................................................................13
1.107 "Pro Rata".................................................................................13
1.108 "Professional".............................................................................13
1.109 "Professional Claim".......................................................................13
1.110 "Professional Fee Order"...................................................................13
1.111 "Prudential Notes".........................................................................14
1.112 "Prudential Notes Agreement"...............................................................14
1.113 "Prudential Notes Secured Claim"...........................................................14
1.114 "Quarterly Distribution Date"..............................................................14
1.115 "Record Date"..............................................................................14
1.116 "Reinstated" or "Reinstatement"............................................................14
1.117 "Released Parties".........................................................................14
1.118 "Released Directors and Officers" means, collectively, [o].................................14
1.119 "Reorganized RoomStore"....................................................................14
1.120 "Reserve"..................................................................................14
1.121 "Rhodes"...................................................................................15
1.122 "RoomStore"................................................................................15
1.123 "RoomStore Assets".........................................................................15
1.124 "RoomStore Unsecured Claim"................................................................15
1.125 "RoomStore Unsecured Claims Reserve".......................................................15
1.126 "SEC"......................................................................................15
1.127 "Scheduled"................................................................................15
1.128 "Schedules"................................................................................15
1.129 "Secured Claim"............................................................................15
1.130 "Security".................................................................................15
1.131 "Securities Act"...........................................................................15
1.132 "Solicitation Procedures Order"............................................................15
1.133 "Subordinated Debt Securities Claim".......................................................16

iii
<PAGE>

1.134 "Subordinated Equity Securities Claim".....................................................16
1.135 "Synthetic Lease(s)".......................................................................16
1.136 "Synthetic Lease Secured Claim"............................................................16
1.137 "Trust Agreement"..........................................................................16
1.138 "Trust Assets".............................................................................16
1.139 "Trust Interest"...........................................................................17
1.140 "Trustee Professional(s)"..................................................................17
1.141 "Unimpaired"...............................................................................17
1.142 "Unsecured Bondholder".....................................................................17
1.143 "Unsecured Bondholder Claim"...............................................................17
1.144 "Unsecured Claim"..........................................................................17
1.145 "Unsecured Notes"..........................................................................17
1.146 "Voting Deadline"..........................................................................17
1.147 "Wachovia Credit Agreement"................................................................17
1.148 "Wachovia Secured Claim"...................................................................17

ARTICLE II ADMINISTRATIVE CLAIMS AND PRIORITY TAX CLAIMS.........................................................19
2.1 Administrative Claims......................................................................19
2.2 Priority Tax Claims........................................................................19

ARTICLE III CLASSIFICATION OF CLAIMS AND INTERESTS...............................................................21
3.1 Introduction...............................................................................21

ARTICLE IV PROVISIONS FOR TREATMENT OF CLAIMS AND INTERESTS......................................................22
4.1 Class 1 (Other Priority Claims)............................................................22
4.2 Class 2(a) (Wachovia Secured Claim)........................................................22
4.3 Class 2(b) (Prudential Notes Secured Claim)................................................23
4.4 Class 2(c) (Synthetic Lease Secured Claims)................................................23
4.5 Class 3 (Bondholder Secured Claim).........................................................23
4.6 Class 4 (Other Secured Claims).............................................................23
4.7 Class 5(a) (RoomStore Unsecured Claims)....................................................24
4.8 Class 5(b) (Funded Debt Unsecured Claims)..................................................25
4.9 Class 5(c) (Heilig Unsecured Claims).......................................................26
4.10 Class 6(a) (Subordinated Debt Securities Claims)...........................................26
4.11 Class 6(b) (Subordinated Equity Securities Claims).........................................27
4.12 Class 7 (Old Common Stock).................................................................27
4.13 Reservation of Rights......................................................................27
4.14 Estimation of Claims.......................................................................27

ARTICLE V ACCEPTANCE OR REJECTION OF THE PLAN; EFFECT OF REJECTION BY ONE OR MORE IMPAIRED CLASSES OF
CLAIMS OR INTERESTS........................................................................28
5.1 Impaired Classes of Claims and Interests Entitled to Vote..................................28
5.2 Presumed Acceptances by Unimpaired Classes.................................................28
5.3 Classes Deemed to Reject Plan..............................................................28
5.4 Confirmation Pursuant to Section 1129(b) of the Bankruptcy Code............................28
5.5 Confirmability and Severability of a Plan..................................................28

iv
<PAGE>

ARTICLE VI MEANS FOR IMPLEMENTATION OF THE PLAN..................................................................29
6.1 Substantive Consolidation..................................................................29
6.2 Debtor Intercompany Claims.................................................................29
6.3 Compromise and Settlement..................................................................29
6.4 Cancellation of Existing Securities and Agreements.........................................29
6.5 Liquidation and Dissolution................................................................30
6.6 New RoomStore Common Stock.................................................................31
6.7 The Liquidation Trust; Organizational Matters..............................................31

 

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