The plan may help the company emerge from bankruptcy by April 30.
Orchard Brands Corp., is one step closer to emerging from bankruptcy.
The company, which filed for Chapter 11 bankruptcy protection in January, says the U.S. Bankruptcy Court for the District of Delaware has approved a reorganization that could have Orchard Brands emerge from Chapter 11 as soon as the end of the month.
Orchard Brands, No. 63 in the Internet Retailer Top 500 Guide, operates such apparel brands as Appleseed’s, Blair and Norm Thompson.
Orchard Brands, a unit of private equity firm Golden Gate Capital, filed for bankruptcy to reorganize and eliminate nearly $420 million in debt. Under the reorganization plan, Orchard Brands is seeking $140 million in special debt financing, including $40 million for a new term loan and a $100 million revolving loan. Orchard Brands has already secured $120 million in financing from its lenders, the company says.
“Our approved plan, which reduces our debt by over half and gives us access to significant new capital, will enable Orchard Brands to emerge from this process with a financial structure that firmly positions us for long-term success,” says CEO Neale Attenborough.