Boyds Collection emerges from Chapter 11 bankruptcy

By Caroline Salls

Pittsburgh, June 28 - The Boyds Collection, Ltd. emerged from Chapter 11 bankruptcy Wednesday as a privately held company after its plan of reorganization took effect, according to a company news release.

The plan was confirmed by the U.S. Bankruptcy Court for the District of Maryland on June 13.

"Boyds is emerging as a financially stable company, and with this solid foundation will be able to move forward as a viable business poised for growth," chief executive officer and director Jan Murley said in the release.

"We have secured $11 million in exit financing, which will provide the necessary assurance to our customer base that we are financially sound."

Under the approved reorganization 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 voted 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 voted 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 voted to accept the plan, they will receive cash for 24% of their claim.

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

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

If they voted 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.

As part of the emergence from Chapter 11, Murley is leaving Boyds, and Robert Coccoluto, who served as president and chief financial officer of Boyds between 1998 and 2000, will act as CEO following Murley's departure.

Peter Frost will assume the responsibilities as chief operating officer. Michael A. Prager, who is Boyds' group vice president, wholesale, has assumed the position of president, effective May 25.

Boyds, a Gettysburg, Pa., maker of gifts and collectibles, filed for Chapter 11 on Oct. 16, 2005. Its case number is 05-43863.

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