QualTek Services Inc., along with its affiliates, filed a joint plan of reorganization with related disclosure statement in the US Bankruptcy Court on May 24, 2023. As per the plan filed, administrative claims, professional fee claims, priority tax claims and other priority claims shall be paid in full in cash. ABL DIP Claims shall be refinanced by the ABL Exit Facility to the extent availability exists under the ABL Exit Facility with any shortfall to be satisfied by a payment in cash.

Term Loan DIP Claims shall be converted on a dollar-for-dollar basis into a 1L Exit Facility Loan in accordance with the Term Loan DIP Documents and the 1L Exit Facility Documents. Other Secured Claims shall either receive payment in full in cash or reinstated or collateral securing such claim. Priority term loan claims of $0 shall be converted on a dollar-for-dollar basis into a 1l exit facility loan.

Rollover term loan claims of $102.9 million shall receive, in full and final satisfaction of such claim, its pro rata share of the 3l exit facility loans. Tranche B term loan claims of $248.5 million with estimated recovery of 14% - 25% shall receive its pro rata share of 40% of the new equity interests, subject to dilution by the warrants and the MIP. Convertible notes claims of $131.1 million with estimated recovery of 7% - 12% shall receive its pro rata share of 10% of new equity interests, subject to dilution by the warrants and the MIP, and its pro rata share of the warrants.

General unsecured claims shall receive either payment in full in cash or reinstated. TRA claims of $0 and section 510(b) of $0 claims shall be cancelled without any distribution. Intercompany claims shall either be reinstated, converted to equity, or set off, settled, distributed, contributed, cancelled, or released.

Intercompany interests shall either be reinstated or set off, settled, distributed, contributed, cancelled, or released. Equity interests will be cancelled, released, and extinguished and will be of no further force or effect, and holders of equity interests will not receive any distribution on account of such equity interests. The debtors shall fund distributions under the plan, as applicable, with the proceeds from the exit facilities, the new equity interests, the warrants and the debtors?

cash on hand. On the plan effective date, the new board shall be established, and each reorganized debtor shall adopt its new organizational documents. QualTek Services Inc., along with its affiliates, filed a modified joint plan of reorganization with related disclosure statement in the US Bankruptcy Court on June 29, 2023.

As per the plan filed, there is no change in treatment of any claim class or source of funding.