Tom's Foods in discussion with noteholders about restructuring

By Ellen Chang

Houston, March 2 - Tom's Foods Inc. said that holders of its 10½% senior secured notes due 2004 received a settlement proposal from the company's largest shareholder, Heico Holdings, Inc.

The proposal's terms said that Heico and other participating shareholders would invest up to $15 million of cash in connection with a proposed restructuring.

Under the Heico proposal, the new money would fund a $7 million principal paydown of noteholder claims, $3.15 million of overdue accrued interest originally due Nov. 1, 2004 and $4.85 million for working capital needs.

The remaining noteholder principal of $53 million and additional accrued interest through May 1 of $3.15 million would be extended through a new $56.15 million secured note maturing in November 2008.

The Heico proposal would grant noteholders additional collateral, including currently unencumbered plants in Florida and Tennessee and related assets.

Tom's Foods, a Columbus, Ga., snack food manufacturer, failed to make the principal and interest payment due last November.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.