Wolverine Interests, LLC (Plan Proponent) filed with the U.S. Bankruptcy Court for the Northern District of Texas, Dallas Division, proposed Plan of Reorganization for debtor Dougherty’s Pharmacy, Inc., on July 28, 2020.
The primary purpose of the Plan is to facilitate the resolution and treatment of the Debtor’s outstanding Claims, Liens and Interests. The Plan constitutes a chapter 11 reorganization plan for the Debtor. In summary, the Plan provides for the Proponent to satisfy the Debtor’s Allowed Unsecured Claims. The Proponent is purchasing the Debtor’s equity and injecting additional working capital into the Debtor in order to fund the satisfaction of the Allowed Unsecured Claims. The Debtor’s former equity interests will be cancelled and reissued for the benefit of the Proponent as necessary for the Proponent to obtain full direct and indirect control of the Debtor.
To implement this Plan, the Proponent will fund the payment of the Allowed Unsecured Claims. The Proponent believes that the Plan will ensure Holders of Allowed Claims will receive greater distributions under the Plan than they would if the Debtor’s Chapter 11 Case was converted to Chapter 7 and the Debtor’s Assets liquidated by a Chapter 7 Trustee.
Under the Plan, Allowed Claims against and Allowed Interests in the Debtor are placed in Classes. Certain Claims, including Priority Tax Claims and Administrative Claim are not classified and, if not paid prior to Confirmation, would receive payment in full in Cash on the distribution date.
Class 1 Allowed General Unsecured Claims. In satisfaction of their respective Allowed Unsecured Claims, each Holder of an Allowed Class 2 Claim shall receive either: (A) Fifty percent (50.0%) of the Holder’s Allowed Claim immediately following the Effective Date; or (B) the Holder’s Allowed Claim on the one (1) year anniversary of the Effective Date.
Class 2 Allowed Equity Interests in the Debtor. Terminated; reissue equity in the Reorganized Debtor.
From and after the Effective Date, the Debtor will continue to exist as the Reorganized Debtor owned directly or indirectly by the Proponent. The Proponent is obtaining ownership of the Debtor through the payment of not less than $100,000.00 to the Debtor to fund the Debtor’s successful reorganization. That $100,000 to be paid to satisfy Class 1 Claims on the Effective Date of the Plan or over the one year period after the Effective Date.
A full-text copy of the Disclosure Statement dated July 28, 2020, is available at https://tinyurl.com/y5p7rm4m from PacerMonitor.com at no charge.
Attorneys for Wolverine Interests:
Patrick J. Schurr
SCHEEF & STONE, L.L.P.
2600 Network Boulevard
Frisco, Texas 75034
About Dougherty’s Pharmacy
Dougherty’s Pharmacy, Inc., focuses on acquiring, managing, and growing community based pharmacies in the Southwest Region of the United States. Its flagship store is Dougherty’s Pharmacy, a turn-key multi-service pharmacy located in Dallas, Texas. The company was formerly known as Ascendant Solutions, Inc. and changed its name to Dougherty’s Pharmacy, Inc. in May 2017. Dougherty’s Pharmacy was founded in 1929 and is based in Dallas, Texas.