Harry & David details bankruptcy plan


Harry & David Holdings Inc. outlined a Chapter 11 bankruptcy exit plan that holders of about 81% of its unsecured notes have voiced support for.

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Harry & David Holdings Inc. outlined a Chapter 11 bankruptcy exit plan that holders of about 81% of its unsecured notes have voiced support for.

Burdened by nearly $200 million in short- and long-term obligations, Harry & David was battered in the recession after customers cut back on luxury items. The retailer earlier this year breached terms on a revolving credit line and skipped an interest payment due bondholders. It filed for bankruptcy protection in late March.

Under the plan detailed Monday, an equity capital raise backed by a group of existing noteholders would generate another $55 million after the company emerges from bankruptcy proceedings. The company would use proceeds from the capital raise to satisfy obligations from its $55 million post-petition term loan.

Read more at The Wall Street Journal.

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