CURO Group Holdings Corp. Announces Confirmation of Plan of Reorganization

Rhea-AI Summary

CURO Group Holdings Corp. (OTC: CUROQ) has announced the confirmation of its Joint Prepackaged Plan of Reorganization by the U.S. Bankruptcy Court for the Southern District of Texas and the Ontario Superior Court of Justice. The Plan received overwhelming support from stakeholders, relieving CURO of approximately $1 billion in debt and at least $75 million in annual interest obligations.

It aims to improve liquidity and ensure full payment to general unsecured creditors. CURO targets exiting Chapter 11 by late June, pending regulatory approvals and customary conditions. CEO Doug Clark acknowledged the collaboration and support from various stakeholders as key to this milestone.

Positive

• The Plan of Reorganization was confirmed by both U.S. and Canadian courts.
• The Plan received 100% support from Prepetition 1L Term Loan Claims and Prepetition 1.5L Notes Claims voters.
• More than 99.9% of Prepetition 2L Notes Claims voters supported the Plan.
• Over 95% of Existing CURO Interests approved the Plan.
• Approx. $1 billion of debt and at least $75 million in annual interest obligations will be relieved.
• The Plan provides for improved liquidity.
• General unsecured creditors, including trade, customer, employee, and landlord claims, will be paid in full.
• Exiting Chapter 11 is targeted for late June, subject to regulatory approvals.

Negative

• The company is currently undergoing bankruptcy reorganization.
• Exiting Chapter 11 is contingent on receiving all necessary regulatory approvals and satisfying certain closing conditions.

GREENVILLE, S.C.--(BUSINESS WIRE)-- CURO Group Holdings Corp. (OTC: CUROQ) (“CURO” or the “Company”) today announced that its Joint Prepackaged Plan of Reorganization (the “Plan”) was confirmed by the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division (the “Bankruptcy Court”). The Plan received overwhelming support from existing stakeholders constituting (1) 100% of the Company’s Prepetition 1L Term Loan Claims and Prepetition 1.5L Notes Claims that voted on the Plan, (2) more than 99.9% of the Company’s Prepetition 2L Notes Claims that voted on the Plan, and (3) more than 95% of Existing CURO Interests that voted on the Plan. The Company also obtained recognition of the Plan from the Ontario Superior Court of Justice (Commercial List) (the “Canadian Court”).

Following the Bankruptcy Court’s approval of the Plan and the subsequent recognition of the Plan by the Canadian Court, the Company is targeting an exit from chapter 11 in late June, subject to receiving all necessary regulatory approvals and satisfying certain other customary closing conditions.

The Plan will relieve the Debtors of approximately $1 billion in debt and not less than $75 million of annual interest obligations and will otherwise provide for improved liquidity. Importantly, the Plan provides for payment in full of the allowed claims of general unsecured creditors, which includes, among others, trade, customer, employee, and landlord claims.

Doug Clark, CURO’s CEO, said: “Obtaining approval of our Plan from the courts in the U.S. and Canada marks a pivotal moment for CURO, a milestone we should celebrate as we move into the final stages to emerge from chapter 11. This achievement would not have been possible without the collaboration and support from our lenders, employees, customers, partners, vendors, creditors, and shareholders. The joint effort from this diverse and expansive CURO community is one of our greatest strengths and will be integral for our next phase as we reinforce our competitive industry position.

The overwhelming support for our Plan highlights the substantial value our investors recognize in our business and the solutions we offer. With emergence expected around the end of June 2024, we join our lenders and stakeholders in our steadfast commitment to provide our customers with a variety of convenient, easily accessible financial services.”

Copies of the Plan and the accompanying disclosure statement, as well as other information regarding the Company’s chapter 11 cases (the “Chapter 11 Cases”), are available at the following website: https://dm.epiq11.com/Curo.

About CURO

CURO Group Holdings Corp. (OTC: CUROQ) is a leading consumer credit lender serving U.S. and Canadian customers for over 25 years. Our roots in the consumer finance market run deep. We’ve worked diligently to provide customers a variety of convenient, easily accessible financial services. Our decades of diversified data power a hard-to-replicate underwriting and scoring engine, mitigating risk across the full spectrum of credit products. We operate under a number of brands including Cash Money®, LendDirect®, Heights Finance, Southern Finance, Covington Credit, Quick Credit and First Heritage Credit.

Forward-Looking Statements

This press release contains forward-looking statements. In addition, words such as “estimate,” “believe,” “forecast,” “step,” “plan,” “predict,” “focused,” “project,” “is likely,” “guidance,” “expect,” “anticipate,” “intend,” “should,” “will,” “confident,” variations of such words and similar expressions are intended to identify forward-looking statements. The Company’s ability to achieve these forward-looking statements is based on certain assumptions, judgments and other factors, both within and outside of the Company’s control, that could cause actual results to differ materially from those in the forward-looking statements, including the risk that the Restructuring Support Agreement, dated March 22, 2024 (the “RSA”), may be terminated by certain of its parties if specified milestones are not achieved, amended or waived, or if certain other events occur, the ability to obtain relief from the Bankruptcy Court to facilitate the smooth operation of the Company’s businesses during the Chapter 11 Cases, and other risks and uncertainties relating to the contemplated Chapter 11 Cases, including but not limited to, the Company’s ability to obtain approval of the Bankruptcy Court with respect to motions, the effects of the Chapter 11 Cases on the Company and on the interests of various constituencies, Bankruptcy Court rulings in the Chapter 11 Cases and the outcome of the Chapter 11 Cases in general, the length of time the Company will operate under the Chapter 11 Cases, risks associated with third-party motions in the Chapter 11 Cases, regulatory approvals required to emerge from chapter 11, the potential adverse effects of the Chapter 11 Cases on the Company’s liquidity or results of operations and increased legal and other professional costs in connection with the Chapter 11 Cases, as well as other factors discussed in the Company’s filings with the U.S. Securities and Exchange Commission. These projections, estimates and assumptions may prove to be inaccurate in the future. These forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties that are difficult to predict with regard to timing, extent, likelihood and degree of occurrence. There may be additional risks that the Company does not presently know or currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual future results. The Company undertakes no obligation to update, amend or clarify any forward-looking statement for any reason.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240517019707/en/

Investors:

Email: IR@curo.com



Media:

Jude Gorman / Dan Moore, Collected Strategies

Email: CURO-CS@collectedstrategies.com

Source: CURO Group Holdings Corp.

FAQ

What major development did CURO Group Holdings Corp. (OTC: CUROQ) announce?

CURO announced the confirmation of its Joint Prepackaged Plan of Reorganization by the U.S. and Canadian courts.

How much debt will CURO Group Holdings Corp. (OTC: CUROQ) relieve through its Plan?

The Plan will relieve CURO of approximately $1 billion in debt and no less than $75 million in annual interest obligations.

When is CURO Group Holdings Corp. (OTC: CUROQ) expected to exit Chapter 11?

CURO is targeting an exit from Chapter 11 by late June, subject to regulatory approvals and closing conditions.

What level of support did CURO Group Holdings Corp. (OTC: CUROQ) receive for its Plan?

The Plan received 100% support from voters on Prepetition 1L Term Loan Claims and Prepetition 1.5L Notes Claims, over 99.9% from Prepetition 2L Notes Claims voters, and over 95% from Existing CURO Interests.

What provisions does the CURO Group Holdings Corp. (OTC: CUROQ) Plan include for general unsecured creditors?

The Plan provides for the payment in full of allowed claims of general unsecured creditors, including trade, customer, employee, and landlord claims.