Boyds Collection disclosure statement approved; plan confirmation hearing set for June 8

By Caroline Salls

Pittsburgh, April 27 - The Boyds Collection, Ltd.'s disclosure statement for its plan of reorganization was approved Thursday by the U.S. Bankruptcy Court for the District of Maryland, according to a company news release.

The plan confirmation hearing is scheduled for June 8. The company said it expects to emerge from bankruptcy in June.

According to the release, Boyds' largest secured lender and its official committee of unsecured creditors support the plan.

Under the plan:

• Holders of $57.7 million of senior secured claims will receive $30 million of senior secured promissory notes due after five years and 48.5% of the common stock of the reorganized company;

• If qualifying noteholders vote to accept the plan, they will receive cash for 22% of their claim plus 5% of the stock of the reorganized company and 50% of the reallocated shares.

If qualifying noteholders vote to reject the plan, they will receive 5% of the stock of the reorganized company and 50% of the reallocated shares;

• If non-qualifying noteholders vote to accept the plan, they will receive cash for 24% of their claim.

If non-qualifying noteholders vote to reject the plan, they will receive cash for 2% of their claim;

• If holders of general unsecured claims vote to accept the plan, they will receive cash for 28% of their claim.

If they vote to reject the plan, they will receive cash for 4% of their claim, to be paid on the date a "future transaction" is completed or after 18 months, whichever is sooner;

• Equity holders with more than 200 shares will receive 46.5% of the equity of the reorganized company;

• Holders of less than 200 shares will receive $0.15 per share.

Boyds Collection said it is negotiating with one of its senior lenders for a $11 million revolver with a $4 million seasonal over-advance option to fund post-reorganization operations.

The Gettysburg, Pa., maker of gifts and collectibles said the restructuring will cut its debt by $60 million.

Boyds filed for Chapter 11 on Oct. 16, 2005. Its case number is 05-43863.

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