Home / Knowledge / News / Fashion / Retailer Friedman's Inc reorganization plan successful

Retailer Friedman's Inc reorganization plan successful

Dec '05
Savannah, Georgia based jewelry retailer Friedman's Inc announced that the Company's First Amended Plan of Reorganization ("Plan") became effective on December 9, marking its emergence from Chapter 11.

Friedman's has met all requirements to emerge from bankruptcy, and the implementation of the court-approved Plan brings to a conclusion the Company's financial restructuring.

In conjunction with its emergence from Chapter 11, the Company also closed on its new $125 million exit financing facility provided by CIT Group, Inc. (the "CIT Exit Facility").

The CIT Exit Facility has a five-year term and will be used to fund payments to be made in accordance with the Company's court approved Plan, for ongoing working capital needs, and for general corporate purposes.

Consistent with the Plan confirmed by the U.S. Bankruptcy Court on November 23, 2005, Friedman's previously outstanding common stock has been cancelled. New common stock has been issued under an Investment Agreement with Friedman's Plan sponsor, Harbert Distressed Investment Master Fund, Ltd. ("Harbert").

Harbert invested significant amounts in Friedman's capital structure while the Company was in Chapter 11. In exchange for the conversion of all of Harbert's Chapter 11 claims and other interests in Friedman's and an additional $25 million incremental equity investment under the Investment Agreement made as part of the Plan closing, Harbert received substantially all of the capital stock of reorganized Friedman's.

Must ReadView All

Pic: Shutterstock

Textiles | On 20th Feb 2020

An Industry Goes Viral

When the novel coronavirus, now called COVID-19, was first detected...

Pic: Shutterstock

Textiles | On 20th Feb 2020

Rising global import of sacks and bags

Overall trade of sacks and bags (for packaging of goods) has been...

Pic: freemind-production / Shutterstock.com

Retail | On 20th Feb 2020

Authentic Brands announces acquisition of Forever 21

Authentic Brands Group (ABG), a global brand development, marketing,...

Interviews View All

Top executives, Textile industry

Top executives
Textile industry

Textile institutes need to change their curriculum

Headhonchos, Textiles & allied industry

Textiles & allied industry

Textiles industry is always in the forefront in accepting latest technology

Asim Dalal, Indo Count Retail Ventures

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Franco Ravazzi,

Franco Ravazzi

Italy-based Tessimenti E Orditi Tinti (T.O.T SRL) specialises in stocking...

Abhishek Pachauri,

Abhishek Pachauri

Reckon Industries is into manufacturing of textile process house machines, ...

Alessandro Marengo,

Alessandro Marengo

Founded in 1974, Italian firm Zaitex SpA is one of the leading suppliers...

Kevin Nelson, TissueGen

Kevin Nelson

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Giulio Cesareo, Directa Plus

Giulio Cesareo
Directa Plus

UK-based Directa Plus is one of the largest producers and suppliers...

Frank Heislitz, Freudenberg

Frank Heislitz

Freudenberg Performance Materials is a leading global manufacturer of...

Priya Somaiya, Usha Social Services

Priya Somaiya
Usha Social Services

The Usha Silai label from Usha International is all set for a retail...

Prathyusha Garimella, Prathyusha Garimella

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Tony Ward, Tony Ward

Tony Ward
Tony Ward

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

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

February 2020

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

Advanced Search