The court confirmed Old Time Pottery, LLC and OTP Holdings, LLC’s corrected amended joint Chapter 11 plan on Oct. 15, approving a reorganization built around exit financing from Second Avenue Capital Partners and continued operations rather than liquidation source filing. The case began June 28 after COVID-19 shutdowns hammered sales at the Murfreesboro, Tenn. home decor retailer, which entered Chapter 11 with 43 stores across 11 states and roughly 800 full- and part-time employees source filing.

Liquidity was the case’s fulcrum: the debtors sought a $32.3 million senior secured DIP facility from Second Avenue to refinance about $28.2 million owed to PNC Bank and preserve confidence among employees, vendors, landlords, suppliers and customers source filing. Under the confirmed plan, DIP obligations were paid in cash or rolled into post-effective-date financing, Class 5 general unsecured claims received scheduled 100% repayment over three annual installments with 4% interest or a 60% early cash election capped at $25,000, and insider debt was deferred behind Class 5 payments source filing. The confirmation order vested estate property in the reorganized debtors, authorized assumption of listed leases and contracts, rejected the rest, and found the plan feasible source filing.