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Mrs. Fields' Bankruptcy Plan Confirmed
As part of its reorganization, Mrs. Fields said it has a three-year, $10 million senior term credit facility.
October 6, 2008
Mrs. Fields Original Cookies said its plan of reorganization was confirmed by the US Bankruptcy Court for the District of Delaware.
Mrs. Fields filed for bankruptcy protection on Aug. 24, listing assets worth $132 million and liabilities of $250 million.
As part of its reorganization, Mrs. Fields said it has a three-year, $10 million senior term credit facility from a select group of its noteholders that will be used, in conjunction with cash flows from normal operations, to support the company's go-forward operations and working capital needs. The company did not identify the group of noteholders in its press statement.
Court documents show that, on the day of its bankruptcy filing, Capricorn Investors II LP, Capricorn Investors III LP and Annex Holdings I LP held 5% or more of the debtor's securities.
Also, the company said its reorganized plan improves its balance sheet by exchanging bondholder debt for cash, new bonds and a controlling equity stake in the reorganized company.
"We are very pleased to have a confirmed plan of reorganization only 40 days after filing our prepackaged bankruptcy petitions, and see this as a testament to the hard work of our outstanding employees, franchisees and vendors, and to the dedication of our loyal customers," Michael Ward, interim co-chief executive officer, said in a prepared statement.
Blackstone Advisory Services acted as the financial advisor to Mrs. Fields. David Hurst of Montgomery, McCracken, Walker & Rhoads is debtor counsel.
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