PITTSFIELD, Mass., Aug. 19 (UPI) -- KB Toys Inc. of Pittsfield, Mass., said Friday it gained bankruptcy court approval of its reorganization plan.
The plan provides for PKBT Funding LLC, an affiliate of Prentice Capital Management, LP, to invest $20 million in the reorganized KB Toys and provide the company and its subsidiaries with a credit facility of up to $25 million.
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In exchange, PKBT gets 100 percent of the preferred stock and, together with Roger V. Goddu, Gregory R. Staley and certain members of the KB Toys management team, 90 percent of the common stock of the reorganized company.
The remaining common stock will be kept in a trust for the benefit of the unsecured creditors of KB Toys and certain of its subsidiaries.
