BBX Capital announces the exit of IT’SUGAR from bankruptcy

FORT LAUDERDALE, Fla .– (COMMERCIAL THREAD) – BBX Capital, Inc. (OTCQX: BBXIA) (PINK: BBXIB) ( “BBX Capital” or the “Company”) today announced qu’IT’SUGAR LLC and its wholly owned subsidiaries (collectively ” IT’SUGAR ”) came out of bankruptcy and BBX Capital took back control of IT’SUGAR and will again consolidate IT’SUGAR’s results in its financial statements.

As previously announced on September 22, 2020 IT’SUGAR filed voluntary petitions relief under Chapter 11 of Title 11 of the United States Bankruptcy Code ( “Chapter 11”) with the US Bankruptcy Court for the District South Florida (the “Bankruptcy Court”). June 16, 2021, the Bankruptcy Court issued an order (the “Confirmation Order”) confirming the reorganization plan filed by IT’SUGAR as amended by the confirmation order (the “Plan”). As of June 17, 2021 (the “Effective Date”), all of the conditions precedent to the Plan have been met or have been lifted. Consequently, on the Effective Date, BBX Capital’s holdings in IT’SUGAR were reinvested in BBX Capital. Following the confirmation of the Plan, BBX Capital was deemed to have bought back a majority financial stake in IT’SUGAR and will again consolidate IT’SUGAR’s results in its financial statements.

Under the terms of the Plan, claims and interests in IT’SUGAR were treated as follows:

  • the subsidiary of the Company, which held a claim for a secured line of credit before authorized request, was repaid in full through the exit facility (as defined and more particularly described below);

  • the secured loan claim for authorized prepetition equipment held by the Company’s subsidiary has been supported, ratified and reinstated on the effective date;

  • each holder of an authorized construction / mechanic’s lien claim has received full cash payment on the Effective Date or will receive such payment as soon as possible after the Effective Date;

  • each holder of an authorized Unsecured General Claim has received, in full satisfaction of such claims, a one-time flat-rate distribution equal to 15% of their authorized General Unsecured Claim on the effective date or will receive such payment as soon as possible after the effective date Date;

  • holders of Subordinate Complaints will not receive any distribution in respect of them; and

  • BBX Capital and the other holder of participations in IT’SUGAR saw their respective interests buy back, and all the organizational documents of IT’SUGAR were taken up, ratified and reinstated.

The plan was financed with cash from IT’SUGAR and a secured exit credit facility (the “exit facility”) advanced by a subsidiary of the Company in an amount of up to $ 13.0 million ( minus the amount of the Advance Credit Line and DIP Loan owed by IT’SUGAR, which had a total principal balance of $ 10.0 million at the effective date), subject to certain customary terms and conditions .

The Plan includes integrated compromise and settlement of claims. Unless stated otherwise in the plan, the plan and order of confirmation were in full satisfaction of all claims and interests in IT’SUGAR, and all existing debts of IT’SUGAR were discharged on the date of entry into force. force.

As previously announced, IT’SUGAR’s creditors voted overwhelmingly in favor of the Plan, with creditors’ acceptance of the Plan representing approximately 99% in number and amount of votes cast.

IT’SUGAR currently operates 96 points of sale across the United States, including 10 “temporary” points of sale.

BBX Capital plans to file a Current Report on Form 8-K with the SEC June 17, 2021 that will include additional information related to the plan, up-to-day business-related IT’SUGAR and pro forma financial information related to reacquisition of BBX Capital. control of IT’SUGAR.

About BBX Capital, Inc .: BBX Capital, Inc. (OTCQX: BBXIA) (ROSE: BBXIB) is a diversified Florida-based holding company whose primary holdings include BBX Capital Real Estate, BBX Sweet Holdings and Renin. For more information, please visit www.BBXCapital.com.

This press release contains forward-looking statements. All opinions, forecasts, projections, future plans or other statements, other than statements of historical fact, are forward-looking statements. Forward-looking statements in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements are based on current expectations and involve risks, uncertainties and other factors, many of which are beyond the control of the Company, which may cause actual results or performance to differ from those stated or implied. in forward-looking statements. These risks and uncertainties include, without limitation, the impact of consolidating IT’SUGAR’s results in the Company’s financial statements; the potential negative impact of the Chapter 11 procedure and the success of the restructuring; the continued negative impact of the COVID-19 pandemic on IT’SUGAR, including its operations, results and financial condition; and general economic conditions and other factors. In addition, reference is also made to the risks and uncertainties relating to the activities, operations, business, results and financial position of BBX Capital and its subsidiaries, as well as to the ownership of shares of BBX Capital, detailed in reports filed by BBX Capital with the SEC. , including its annual report on Form 10-K for the fiscal year ended December 31, 2020 (including the “Risk Factors” section thereof) and its quarterly report on Form 10-Q for the quarter ended December 31, 2020 March 2021, which can be viewed on the SEC’s website at www.sec.gov and in the “About – Investor Relations” section of the Company’s website at www.bbxcapital. com. The Company warns that the above factors are not exclusive. Readers should not place undue reliance on forward-looking statements, which speak only as of the date they are posted. The Company does not undertake, and specifically disclaims any obligation, to update or supplement forward-looking statements, except as required by law. In addition, past performance may not be indicative of future results.

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