Hines Horticulture disclosure statement, asset sale approved; plan confirmation hearing set for Jan. 28

By Caroline Salls

Pittsburgh, Dec. 16 - Hines Horticulture, Inc. received court approval of the disclosure statement for its plan of reorganization and the sale of substantially all of its assets Tuesday, according to filings with the U.S. Bankruptcy Court for the District of Delaware.

The plan confirmation hearing is scheduled for Jan. 28.

Under the plan, any assets that remain after the sale of substantially all of Hines' assets will be liquidated, and proceeds will be distributed to creditors.

Treatment of creditors will include:

• Holders of priority claims will recover 100% in cash;

• Holders of other secured claims will receive 100% either in cash or through the return of the collateral securing the claim;

• Holders of 10¼% senior note claims and general unsecured claims will receive a share of post-effective date trust assets and a share of interests in a profit sharing trust; and

• Holders of section 510(b) claims, equity interests in Hines Horticulture and intercompany interests will receive no distribution under the plan.

As previously reported, an affiliate of Black Diamond Capital Management, LLC agreed to purchase the company's assets.

Hines Horticulture said in a Monday court filing that it did not receive any other qualified bids for the assets. As a result, the auction was cancelled, and the Black Diamond affiliate was named the high bidder for the assets.

The purchase price includes a cash consideration comprised of a debtor-in-possession financing payoff amount, a senior secured credit facility payoff amount and a wind down amount, which will not exceed $58 million.

Hines Horticulture, an Irvine, Calif.-based operator of commercial nurseries, filed for bankruptcy on Aug. 20. Its Chapter 11 case number is 08-11922.

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