Harry & David Plan to Exit Bankruptcy by Late Summer

Associated Press - Fruit basket and gifts retailer Harry & David Holdings Inc. plans to exit bankruptcy protection in late summer, the company said in a reorganization plan filed on Monday.

The company, which entered Chapter 11 bankruptcy protection in March after struggling to remain afloat during the recession and as online and discount competitors proliferated, said the plan has the support of its official committee of unsecured creditors and about 81 percent of the company's noteholders.

Under the plan, Harry & David, based in Medford, Ore., will be able to convert all of its $200 million in outstanding notes into equity. It will also raise $55 million in equity financing after it emerges from Chapter 11. That financing will be used to pay down debt.

A hearing on the plan's disclosure statement is expected in June, after which Harry & David will see approval from classes of creditors and hold a confirmation hearing on the plan.

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