BEVERLY, Mass.--(BUSINESS WIRE)--Appleseed’s Intermediate Holdings LLC and each of its domestic subsidiaries, which do business in the United States as “Orchard Brands” (the “Company”), announced today that it has entered into a global settlement with each of its major creditor constituencies, paving the way for an expedited emergence from chapter 11.
The Company filed with the U.S. Bankruptcy Court for the District of Delaware a modified version of its Plan of Reorganization (the “Plan”), which incorporates the global settlement among the Company, over 80% of its first lien lenders and 100% of its second lien secured lenders and the Official Committee of Unsecured Creditors appointed in the chapter 11 case. The settlement will allow the Company to move forward with a reorganization that will eliminate approximately $420 million of indebtedness and improve the Company’s operational flexibility. The Company also received final approval of its $140 million debtor- in-possession (DIP) financing and $120 million in exit financing which will help facilitate the consummation of the Plan.
Neale Attenborough, Orchard Brands’ Chief Executive Officer said, “Today’s announcement is a major milestone in the restructuring process. The settlement, which, combined with the final approval for our DIP financing, will enable us to swiftly facilitate the consummation of the Plan. We continue to work diligently with our stakeholders and are making good progress on our reorganization, which, when implemented, will eliminate approximately $420 million of debt, improve the Company’s operating flexibility and position Orchard Brands for long-term success.”
More information about the Company’s reorganization case is available on the Company's Web site at www.orchardbrands.com. For filings and information regarding claims, please visit http://www.kccllc.net/appleseeds.
ABOUT “ORCHARD BRANDS”
“Orchard Brands” is a leading, multi-channel marketer of apparel and home products focused on serving the needs of the rapidly growing market segment of women and men above the age of fifty-five. Through its 17 brands the Company provides quality products to consumers through the catalog, Internet and retail channels, with a relentless focus on delivering superior service.
Forward-looking statements
This press release, as well as other statements made by the Company may contain forward-looking statements within the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 that reflect, when made, the Company’s current views with respect to current events and financial performance. Such forward-looking statements are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the Company’s operations and business environment, which may cause the actual results of the Company to be materially different from any future results, express or implied, by such forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events and/or otherwise.