Hines Horticulture emerges from Chapter 11 bankruptcy protection

By Caroline Salls

Pittsburgh, April 13 - Hines Horticulture, Inc. emerged from Chapter 11 bankruptcy when its plan of reorganization took effect on Friday, according to a filing with the U.S. Bankruptcy Court for the District of Delaware.

The plan was confirmed on Jan. 28.

As previously reported, any assets that remained after the sale of substantially all of Hines' assets to an affiliate of Black Diamond Capital Management, LLC will be liquidated, and proceeds will be distributed to creditors.

The purchase price for Hines' assets included a cash consideration comprised of a debtor-in-possession financing payoff amount, a senior secured credit facility payoff amount and a wind down amount, not to exceed $58 million.

Treatment of creditors under the plan will include:

• Holders of priority claims will recover 100% in cash;

• Holders of other secured claims will receive 100% either in cash or through the return of the collateral securing the claim;

• Holders of 10¼% senior note claims and general unsecured claims will receive a share of trust assets; and

• Holders of section 510(b) claims, equity interests in Hines Horticulture and intercompany interests will receive no distribution under the plan.

On March 26, Hines' official committee of unsecured creditors obtained court approval to consolidate the post-consummation trust and profit sharing trust under the company's plan into one trust.

When requesting the approval, the committee said the two trusts were not necessary because the beneficiaries are the same.

Hines Horticulture, an Irvine, Calif.-based operator of commercial nurseries, filed for bankruptcy on Aug. 20, 2008. Its Chapter 11 case number is 08-11922.

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