JOANN Inc., filed a pre-packaged plan of reorganization with related disclosure statement in the US Bankruptcy Court on March 18, 2024. As per the plan filed, Administrative Claims, Priority Tax Claims, Other Priority Claims, United States Trustee Statutory Fees, and Restructuring Fees and Expenses shall receive full amount in cash before the effective date DIP Claims of $132 million plus additional $10 million shall receive, on the Effective Date, its Pro Rata Share of: the New Equity Interests equal to the amount of the DIP Participation Fee; and (2) in respect of the DIP Term Loan Claims, Exit Term Loans. Other Secured Claims of $8.90 million, ABL Claims of $286.39 million, FILO Claims of $115.75 million, Term Loan Claims of $658.13 million shall recover 1.1% shall receive share of the new equity interests, subject to dilution by the management incentive plan, the DIP participation fee, and the new equity interests issued to certain additional financing parties.

General Unsecured Claims of $1,093.50 million shall receive payment in full in cash. Holders of Subordinated Claims shall receive no recovery or distribution on account of such Subordinated Claims. Intercompany Claims shall be either (i) Reinstated or (ii) set off, settled, distributed, contributed, merged, canceled, or released. Intercompany Interests No property shall be distributed to the Holders of Allowed Intercompany Interests.

Holders of Existing Equity Interests are not entitled to receive a recovery or distribution on account of such Existing Equity Interests. The Debtors shall fund Cash distributions under this Plan with Cash on hand, including Cash from operations, and the proceeds of the DIP Facility and Exit Facilities in the amount of $165.90.