Garden Ridge Gets Bankruptcy Plans OK'd
By Staff -- Home Textiles Today, 4/4/2005
Houston —A bankruptcy court has approved Garden Ridge's disclosure statement, procedures for voting, and confirmation schedule regarding its proposed Chapter 11 plan.
The reorganization plan will call for the distribution of preferred stock to general unsecured creditors and cash distributions to “convenience” class and qualified reclamation creditors, according to Garden Ridge. The plan is based upon a $25 million equity infusion from Three Cities Research and anticipates $80 million in exit financing.
“Creditors will receive the disclosure statement, reorganization plan and ballots in early April,” said Don Martin, chief restructuring officer of Garden Ridge.
“The bankruptcy court has scheduled a hearing on April 28 to consider confirmation of the debtors' plan, and we expect Garden Ridge to emerge from Chapter 11 in May with a strong balance sheet and ample line of credit.”
Garden Ridge filed for Chapter 11 in February 2004, and on Feb. 9, 2005 submitted its proposed reorganization plan to the U.S. Bankruptcy Court in Delaware.
