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

Courtesy: Indorama Ventures

Textiles | On 17th Jan 2018

IVL, Huvis to enter JV for Low Melting Fibre plant in US

Indorama Ventures Limited (IVL), a global chemical producer, and...

Future Group to set up garment manufacturing in Bengal

Apparel/Garments | On 17th Jan 2018

Future Group to set up garment manufacturing in Bengal

Kishore Biyani-led Future Group is going to set up a garment...

Courtesy: Messe Frankfurt

Textiles | On 17th Jan 2018

Intertextile Shanghai to discuss opportunities in Asia

The spring edition of Intertextile Shanghai Apparel Fabrics will...

Interviews View All

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

Top executives
Textile industry, India

The event should be organised every year

Arvind Saraf
Triveni Sarees

e-Commerce is still evolving fast with constant flux and surprises

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

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

January 2018

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

Active Poll

Do you see sustainability as a route to business growth?

Yes
68.8%
No
13.5%
Skip
17.7%

Total Votes: 96

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

Yes No

Active Poll

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

Yes
63.5%
No
29.2%
Skip
7.3%

Total Votes: 96

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

Yes No

Active Poll

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

Yes
87.5%
No
9.4%
Skip
3.1%

Total Votes: 96

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

Active Poll

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

Yes
82.3%
No
8.3%
Skip
9.4%

Total Votes: 96


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