O'Sullivan Gets Court Confirmation of Reorganization Plan

March 16, 2006  by in UnCategorized   

By Home Furnishings Business in on March 2006 The U.S. Bankruptcy Court for the Northern District of Georgia has confirmed an amended plan of reorganization by RTA producer O'Sullivan. The approval will allow the company to emerge from bankruptcy in the next few weeks.

The plan calls for a cash payment for general unsecured creditors and a potential additional settlement for all vendors and utility providers who elected to participate, a warrant offering for senior subordinated note holders and the conversion of senior secured notes into substantially all of the equity of the reorganized company, along with $10 million in new junior secured notes.

In addition, the company has received a commitment to secure up to $50 million in exit financing from Wachovia Bank. The revolving credit facility, which will be secured by the assets of the company, will support the plan's implementation and provide working capital for the company's on-going operations.

"The plan confirmation and exit financing paves the way for us to emerge from bankruptcy in a very short time," said Rick Walters, interim chief executive officer. "This restructuring is an exciting step in the continued execution of our strategy."

O'Sullivan filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code Oct. 14.