MusclePharm Corporation filed a plan of reorganization with related disclosure statement in the US Bankruptcy Court on May 26, 2023. As per the plan filed, priority tax claims of $0.30 million, professional compensation of $2.20 million, shall be paid in full in cash. Other secured claims of $10.80 million will be paid in full in cash.

Priority non-tax claims of $0.21 million shall be paid in full in cash. Empery Prepetition secured claim of $18.07 million shall receive its pro rata share of the net sale proceeds, not to exceed $12.0 million less the roll-up and less the amount of Empery?s credit bid. Prestige prepetition secured claim of $2.5 million shall receive the return of the pre-petition accounts receivable collateral securing such allowed prestige secured claim, cash proceeds of the prepetition accounts receivable collateral securing such allowed prestige secured claim, and cash from the net sale proceeds.

General unsecured claims of $24.03 million shall receive its pro rata share of a beneficial interest in the litigation trust. White Winston Claims of $8.63 million shall receive 100% of the new equity Interests or, at White Winston?s election, the prepetition equity interests in the reorganized debtor shall be issued to White Winston in full and final satisfaction of the claim in the amount of $4.63 million, the remaining $4 million of the claim shall not be discharged and shall remain as a liability of the post-confirmation reorganized debtor. Equity Interests shall be cancelled, and holders of such equity interests shall neither receive nor retain anything on account of their existing equity interests.

The plan shall be funded through cash, sale of assets and issue of new equity.