Home / Knowledge / News / Apparel/Garments / Orchard Brands receives Court Approval of First Day Motions
Orchard Brands receives Court Approval of First Day Motions
21
Jan '11
Appleseed's Intermediate Holdings LLC and each of its domestic subsidiaries, which do business in the United States as “Orchard Brands”, announced that it received approval from the U.S. Bankruptcy Court for the District of Delaware for the Company's “first day” motions that will enable the Company's operations to proceed smoothly and without interruption throughout its reorganization case.

Among the first day motions granted, Orchard Brands received interim approval to access the Company's $140 million debtor-in-possession financing provided by its current lenders and to use its cash resources. The Company also received approval to continue to pay employees' salaries, wages, and benefits in the ordinary course, and the Court confirmed the Company's ability to pay vendors for post-petition goods and services. In addition, the Company received approval to allow all customer programs to continue uninterrupted.

Neale Attenborough, Orchard Brands' Chief Executive Officer, said: “We are pleased that the Court has promptly granted these motions, which ensures the Company will be able to continue to operate business as usual, and emerge from this process as quickly as possible with a capital structure that will firmly position us for long-term success.”

As previously announced, the Company initiated voluntary chapter 11 reorganization proceedings on January 19, 2011 after reaching agreement with over 80% of its first lien secured lenders and 100% of its second lien secured lenders on the terms of a pre-arranged plan of reorganization that will eliminate approximately $420 million of indebtedness and improve the Company's operating flexibility.

Certain of the Company's secured lenders have also agreed to invest $40 million of new capital through the chapter 11 plan. The Company intends to move forward with the restructuring on an expeditious basis and complete the restructuring process in approximately three to four months. The Company also secured a commitment from its current lenders to provide up to $120 million in exit financing to consummate its chapter 11 plan.

The Company is being advised by Kirkland & Ellis LLP, its legal counsel, and Alvarez & Marsal and Moelis & Company, its financial advisors.

The Company's ABL lenders are being advised by Winston & Strawn LLP, as legal counsel, and FTI Consulting, as financial advisor. The Company's first lien lenders are being advised by Sidley Austin LLP, as legal counsel, and Loughlin Meghji + Company, as financial advisor. The Company's second lien lenders are being advised by Kramer, Levin, Naftalis, & Frankel LLP, as legal counsel, and Miller Buckfire & Co., as financial advisor.

Orchard Brands


Must ReadView All

Textiles | On 24th Jul 2017

Govt extends deadline for GST composition scheme to Aug 16

The Government on India has extended the deadline for small...

L-R: Dhanapal, JMD, Best Corporation; Prabhu Damodaran, Convenor, ITF; Narayanasamy, MD, Micro Cotspin; Senthilnathan, MD Rasitex India; and Sabapathy, MD, Prasanna Spinning Mills

Textiles | On 24th Jul 2017

TN mills seek partnership with cotton growing states

Spinning mills in Tamil Nadu are seeking stronger partnership with...

Textiles | On 24th Jul 2017

Irani terms GST as a ‘great step towards transparency’

Union textiles minister Smriti Irani has termed the Goods and...

Interviews View All

Hannah Lane
Redress

Encouragement from brands will motivate supply chains to become more...

Rahul Bhadani
Looksgud

Navigating through catalogues is a bit hasslesome

Ajay Ghariwala
Luthra Group

We are ready to adopt or follow every opportunity

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X