MEDFORD, Ore.--(BUSINESS WIRE)--Harry & David Holdings, Inc., a leading multi-channel specialty retailer and producer of branded premium gift-quality fruit, gourmet food products and other gifts marketed under the Harry & David®, Wolferman's® and Cushman's® brands, announced that it has reached a resolution with the Official Committee of Unsecured Creditors in the Company's chapter 11 cases and holders of approximately 81 percent of the Company's public notes on the structure of a consensual Chapter 11 Plan. As part of this resolution, the Official Committee of Unsecured Creditors have committed their support to an amended Chapter 11 Plan structure and withdrew all objections to the Company's motions seeking approval of post-petition financing and certain plan-related relief.
The Company also announced that it has received final Bankruptcy Court approval for a $100 million first-lien debtor-in-possession revolving credit facility provided by the Company’s secured lenders and for a $55 million second-lien DIP term loan provided by a group of holders of the Company’s public notes. The court has also given final approval for up to $100 million in exit financing, which will be provided by the Company’s current lenders, as well as for an amended agreement by supporting noteholders to backstop a $55 million rights offering that will provide Harry & David with the necessary equity financing to emerge from Chapter 11.
“We are pleased that we were able to reach a consensus with our major constituents on the structure of a Chapter 11 Plan and that we have received the Court’s final approval of our financing, both of which are key steps forward in our efforts to restore Harry & David to financial health,” said Kay Hong, Chief Restructuring Officer and interim Chief Executive Officer. “We look forward to implementing our reorganization plan in order to emerge from this process as a stronger, healthier and more competitive company.”
As previously announced, the Company initiated voluntary Chapter 11 reorganization proceedings on March 28, 2011. Consumers can continue to purchase Harry & David products through our catalogs, online at www.harryanddavid.com and at our 70 stores nationwide. Customers may continue to direct inquiries to Harry & David’s customer support at (877) 322-1200. Vendors and other stakeholders can obtain additional information about the reorganization by visiting www.gcginc.com/cases/had or by calling (888) 425-7040. During the Chapter 11 process, the Company will pay for post-petition purchases of goods and services in the ordinary course of business.
Harry & David’s investment banker is Rothschild Inc., its legal advisor is Jones Day, and its financial advisor is Alvarez & Marsal. The Company's bondholders are being advised by Stroock & Stroock & Lavan LLP, as legal counsel, and Moelis & Company as financial advisor.
Forward-Looking Statements
This press release contains forward-looking statements within the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties, as well as assumptions that, if they do not fully materialize or prove incorrect, could cause the Company’s business and results of operations to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements can be identified by the use of words such as “will,” “may,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “intends,” “potential,” “continue,” or the negative of such terms, or other comparable terminology.
Risk factors that may affect the Company’s results include, but are not limited to, those described under the heading “Item 1A. Risk Factors” in the Company’s most recent Annual Report on Form 10-K and under the heading “Item 1A. Risk Factors” in the Company’s most recent Quarterly Report on Form 10-Q, as well as the following: the ability of the Company to continue as a going concern; the Company’s ability to obtain Bankruptcy Court approval with respect to motions in the chapter 11 cases; the ability of the Company and its subsidiaries to prosecute, develop and consummate one or more plans of reorganization with respect to the chapter 11 cases; the effects of the Bankruptcy Filing on the Company and the interests of various creditors, equity holders and other constituents; Bankruptcy Court rulings in the chapter 11 cases and the outcome of the cases in general; the length of time the Company may operate under the chapter 11 cases; risks associated with third-party motions in the chapter 11 cases, which may interfere with the Company’s ability to develop and consummate one or more plans of reorganization once such plans are developed; the potential adverse effects of the chapter 11 proceedings on the Company’s liquidity or results of operations; the ability to execute the Company’s business and restructuring plan; increased legal costs related to the Bankruptcy Filing and other litigation; and the Company’s ability to maintain contracts that are critical to its operation, to obtain and maintain normal terms with customers, suppliers and service providers and to retain key executives, managers and employees.
Any forward-looking statement made by the Company in this press release speaks only as of the date on which such forward-looking statement was made. New risks and uncertainties arise from time to time, and the Company cannot predict these events or how they may affect the Company’s business, financial condition or operations. The Company undertakes no obligation to update or revise the forward-looking statements in this press release after the date hereof, except as may be required by law.
About Harry & David Holdings, Inc.
Harry & David Holdings, Inc. is a leading multi-channel specialty retailer and producer of branded premium gift-quality fruit and gourmet food products and gifts marketed under the Harry & David®, Wolferman’s® and Cushman’s® brands. You can shop our products online at www.harryanddavid.com, www.wolfermans.com, and www.honeybell.com, or visit one of our 70 stores across the country.