Haights Cross Communications may emerge from bankruptcy in mid-March

By Lisa Kerner

Charlotte, N.C., Feb. 24 - Haights Cross Communications, Inc.'s prepackaged plan of reorganization was confirmed by the U.S. Bankruptcy Court for the District of Delaware on Thursday, 44 days after the plan and related petitions were filed, according to a company news release.

The company said upon emergence, expected in mid-March, its debt obligations will be reduced by approximately $200 million to approximately $180 million.

"We could not have achieved our recapitalization in such a short period of time without the loyalty of our customers and vendors, the professionalism and dedication of our employees, and the commitment and support of our creditor groups," said president and chief executive officer Paul J. Crecca.

As previously reported, under the pre-packaged plan:

• The reorganized company will issue $100 million in new three-year first-lien notes with an interest rate of Libor plus 1,000 basis points, with a 300 bps floor;

• The reorganized company will issue $80 million of new four-year second-lien notes with an interest rate of Libor plus 1,300 bps, with a 300 bps floor;

• All amounts owed under the company's credit agreement will be repaid in full in cash and new first-lien notes;

• Senior noteholders will receive a share of the new second-lien notes, 92% of the common stock in the reorganized company and proceeds of a rights offering;

• Holders of senior discount notes will receive a share of 8% of the new common stock, rights to purchase new common stock under the rights offering and three-year exit warrants if they vote to accept the plan;

• Holders of general unsecured claims and trade creditors will be paid in full; and

• Holders of common stock and other equity interests will receive no distribution.

Haights Cross is a White Plains, N.Y.-based educational and library publisher. Its Chapter 11 case number is 10-10062.

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