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Bush Industries' reorganization plan confirmed by court
By Jeff Pines
Washington, Oct. 14 - Bush Industries Inc.'s third reorganization plan was confirmed by the U.S. Bankruptcy Court for the Western District of New York Wednesday.
The company expects to emerge around Oct. 31.
"The plan of reorganization provides new financing through 2006, converts $90 million of bank debt to equity, pays all vendors and unsecured creditors in full and provides a distribution of $1.6 million to shareholders," said Bush interim chief executive Michael Buenzow, a senior managing director of FTI Consulting, in a news release.
Bush will continue to operate along three business segments: Bush Furniture-North America, Bush Furniture-Europe, and Bush Technologies.
The plan calls for Bush's pre-petition bankers to get the reorganized company's stock, a $50 million term note with an interest rate of prime plus 400 basis points and a $15 million term note with an interest rate based on Libor that would be translated into around prime plus 400 basis points as of the effective date.
The company will get a $20 million exit revolver with an interest rate of prime plus 200 basis points. The revolver matures Dec. 31, 2006. Bush will also get a $5.4 million rollover letter-of-credit facility to cover any letters of credit left over from before it filed for Chapter 11. The interest rate will be prime plus 200 basis points.
The Jamestown, N.Y.-based furniture company filed for bankruptcy on March 31, 2004. Its Chapter 11 case number is 04-12295.
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