Boyds Collection files Chapter 11 bankruptcy; obtains $8 million DIP commitment

By Caroline Salls

Pittsburgh, Oct. 17 - The Boyds Collection Ltd. filed for Chapter 11 bankruptcy Sunday in the U.S. Bankruptcy Court for the District of Maryland, according to a company news release.

Boyds has received a commitment from D.E. Shaw Laminar Lending, Inc. for up to $8 million in debtor-in-possession financing, which is expected to fund the company's ongoing operations.

"With the burden of our debt leverage and weakness in several of our distribution channels, Boyds' action will enable the company to realize the strong potential of our premium quality brand and core businesses," chief executive officer and director Jan Murley said in the release.

Court documents list Boyds' assets at zero to $50,000 and its debt at $50 million to $100 million. The company listed no unsecured creditors.

"At present we are working cooperatively with our lenders and holders of senior subordinated notes to develop a reorganization plan," Murley added in the release. "We are negotiating the terms of a restructuring plan with our secured lenders and intend to continue these negotiations with other creditor constituencies in the near term.

"In the meantime, there are no short-term liquidity issues, and we are hopeful that once the plan is filed and accepted, we can exit from Chapter 11 quickly."

Houlihan Lokey Howard & Zukin Capital, Inc. is the financial advisory firm for The Boyds Collection.

Boyds is a Gettysburg, Pa.-based gifts and collectibles designer and manufacturer. Its Chapter 11 case number is 05-43863.

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