Global Home Products disclosure statement approved; plan confirmation hearing set for Feb. 13

By Caroline Salls

Pittsburgh, Dec. 28 - Global Home Products, LLC obtained court approval of the disclosure statement for its plan of reorganization, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

The plan confirmation hearing is scheduled for Feb. 13.

The plan will be funded with a cash contribution by Global Home Products Investors, LLC, an entity that owns 97.75% of the company's equity security interests, and by any cash collateral held by Global Home for the Madeleine secured claim.

Specifically, Global Home Products Investors will contribute $8.5 million in cash, including $1 million for distribution to general unsecured creditors after payment of reclamation claims and $3.5 million to holders of 503(b)(9) claims.

The other $4 million will be used to satisfy administrative and priority claims.

In exchange for its contribution, all of Global Home Products Investors' interests will remain unimpaired under the plan.

All holders of equity interests that are not held by Global Home Products Investors will be given an opportunity to subscribe to a rights offering if they agree to pay the percentage of the effective date cash equal to their non-Global Home Products Investors equity interests.

Treatment of creditors under the plan will include:

• Holders of administrative claims, priority tax claims and non-priority tax claims will recover 100% in cash;

• Holders of 503(b)(9) claims will recover 35% through their share of a $3.5 million cash distribution;

• Holders of $80 million to $100 million in unsecured claims will recover 1% to 1.5% through their share of $1 million of the effective date cash distribution after payment of reclamation claims, plus their share of 18% of any net class 5 claims recovery proceeds;

• Holders of Global Home Products Investors interests and subsidiary equity interests will retain their interests;

• Holders of non-Global Home Products Investors equity interests will be eligible to participate in a rights offering; and

• Holders of cancelled options and warrants will receive no distribution under the plan.

Global Home Products is a Westerville, Ohio-based designer, marketer and manufacturer of branded consumer and specialty products to retail and hospitality customers and original equipment manufacturers. The company filed for bankruptcy on April 10, 2006. Its Chapter 11 case number is 06-10430.

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