8-K
filed March 18, 2024, 7:59 PM ET
CIK 0001834585
other material
confidence high
sentiment negative
materiality 1.00
JOANN Inc.: going-concern / distress — JOANN files prepackaged Chapter 11; stock to be canceled, debt cut $505M
JOANN Inc.
- Chapter 11 filed March 18, 2024; prepackaged plan to cancel all common stock without consideration.
- New $132M DIP financing commitments; expects to reduce funded debt by ~$505M.
- Allowed general unsecured claims to be paid in full; stores and website remain open.
- Company expects to emerge as private company; shares to be delisted from Nasdaq.
- Board approved retention bonuses for three executives totaling ~$1.04M.
Key facts
Extracted from this filing and checked against the source text.
Debt Financings
SEC 8-K Item 2.03/2.04
confidence 0.98
JOANN Inc. reported a default on revolving credit of approximately $402.1 million of borrowings (plus any accrued but unpaid interest and fees in respect thereof) with unknown at not specified maturing not specified.
- Instrument
- revolving credit
- Principal
- approximately $402.1 million of borrowings (plus any accrued but unpaid interest and fees in respect thereof)
- Rate
- not specified
- Maturity
- not specified
- Event
- default
Exact text from the filing
The filing of the Chapter 11 Cases constitutes an event of default that accelerated obligations under the following material debt instruments and agreements (the “Debt Documents”): • approximately $658.1 million of borrowings (plus any accrued but unpaid interest in respect thereof) under that certain Credit Agreement, dated as of October 21, 2016, as amended by that certain Incremental Amendment No. 1 on July 21, 2017 and that certain Amendment No. 2 on July 7, 2021 (the “Term Loan Credit Agreement”); and • approximately $402.1 million of borrowings (plus any accrued but unpaid interest and fees in respect thereof) under that certain Amended and Restated Credit Agreement, dated as of October 21, 2016, as amended by that certain First Amendment on November 25, 2020, that certain Second Amendment on December 22, 2021, and that certain Third Amendment, dated as of March 10, 2023 (the “ABL Credit Agreement”).
View on SEC.gov
Debt Financings
SEC 8-K Item 2.03/2.04
confidence 0.98
JOANN Inc. reported a default on term loan of approximately $658.1 million of borrowings (plus any accrued but unpaid interest in respect thereof) with unknown at not specified maturing not specified.
- Instrument
- term loan
- Principal
- approximately $658.1 million of borrowings (plus any accrued but unpaid interest in respect thereof)
- Rate
- not specified
- Maturity
- not specified
- Event
- default
Exact text from the filing
The filing of the Chapter 11 Cases constitutes an event of default that accelerated obligations under the following material debt instruments and agreements (the “Debt Documents”): • approximately $658.1 million of borrowings (plus any accrued but unpaid interest in respect thereof) under that certain Credit Agreement, dated as of October 21, 2016, as amended by that certain Incremental Amendment No. 1 on July 21, 2017 and that certain Amendment No. 2 on July 7, 2021 (the “Term Loan Credit Agreement”); and • approximately $402.1 million of borrowings (plus any accrued but unpaid interest and fees in respect thereof) under that certain Amended and Restated Credit Agreement, dated as of October 21, 2016, as amended by that certain First Amendment on November 25, 2020, that certain Second Amendment on December 22, 2021, and that certain Third Amendment, dated as of March 10, 2023 (the “ABL Credit Agreement”).
View on SEC.gov
Distress & Bankruptcy
SEC 8-K Item 1.03
confidence 0.9
JOANN Inc. entered chapter 11 in United States Bankruptcy Court for the District of Delaware (petition 2024-03-18).
- Proceeding
- chapter 11
- Court
- United States Bankruptcy Court for the District of Delaware
- Petition
- 2024-03-18
Exact text from the filing
on March 18, 2024 (the “Petition Date”), the Company Parties commenced voluntary cases (the “Chapter 11 Cases”) under chapter 11 of title 11 of the United States Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the District of Delaware
View on SEC.gov
Executive change
SEC 8-K Item 5.02
confidence 0.95
Jonathan Sokoloff resigned as Director at JOANN Inc..
- Action
- resigned
- Role
- Director
Exact text from the filing
Jonathan Sokoloff resigned from the board of directors of JOANN (the “Board”).
View on SEC.gov
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