News Flash

Jewelry retailer Friedman Inc to file Plan of Reorganization

08 Aug '05

3 min read

The Company has been advised by the Creditors' Committee that the Committee will oppose the Plan as currently filed and that the Committee may also file and pursue other forms of relief that could have an adverse effect on the Company.

The Company, Harbert, and the Creditors' Committee informed the Bankruptcy Court at last Thursday's monthly omnibus hearing that the parties were continuing to negotiate possible consensual amendments to the Plan.

At last Thursday's omnibus hearing, the Bankruptcy Court scheduled a hearing on the Disclosure Statement filed in connection with the Plan for September 7, 2005 and an objection deadline regarding the adequacy of the Disclosure Statement for August 31, 2005. In the event that the Creditors' Committee files an objection to the Disclosure Statement, the hearing would be adjourned from September 7, 2005 to September 19, 2005.

Bankruptcy law does not permit solicitation of acceptances of the Plan until the Court approves the related Disclosure Statement as providing adequate information of a kind, and in sufficient detail, as far as is reasonably practicable in light of the nature and history of the debtor and the condition of the debtor's books and records, that would enable a hypothetical reasonable investor typical of the holder of claims or interests of the relevant class to make an informed judgment about the Plan. Accordingly, this announcement is not intended to be, nor should it be construed as, a solicitation for a vote on the Plan.

US based Friedman's Inc founded in 1920, is a leading specialty retailer. The Company is the leading operator of fine jewelry stores located in power strip centers and regional malls.

Friedman's Inc

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