O'Sullivan expects to exit Ch. 11 with $50M financing
By Furniture Today Staff -- Furniture Today, March 26, 2006
Roswell, Ga. — A bankruptcy court judge has approved a reorganization plan submitted by O'Sullivan Inds., and the ready-to-assemble furniture producer said it should emerge from bankruptcy protection in the next few weeks.
The RTA major, which filed for Chapter 11 bankruptcy protection in October, said Wachovia Bank has agreed to provide up to $50 million in exit financing. The revolving credit agreement will support implementation of the plan and provide working capital for ongoing operations, O'Sullivan said.
"The plan confirmation and exit financing paves the way for us to emerge from bankruptcy in a very short time," said Interim CEO Rick Walters. "This restructuring is an exciting step in the continued execution of our strategy."
The plan calls for about $108 million in senior secured notes to be converted into 10 million shares of common stock in the reorganized company, while holders of $102 million in senior subordinated notes would receive warrants for 526,316 shares of the new common stock.
Unsecured creditors would receive 9% of their claim in cash, and could receive an additional 2% to 8% of the money owed if they agree to waive any future claims.
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