Oriental Trading tweaks plan, wins support of creditors committee

By Caroline Salls

Pittsburgh, Oct. 20 - Oriental Trading Co. Inc. filed an amended plan of reorganization and related disclosure statement Tuesday with the U.S. Bankruptcy Court for the District of Delaware to add the support of its official committee of unsecured creditors and amend the treatment for general unsecured creditors.

As previously reported, the plan is also supported by the company's first-lien lenders.

Under the amended plan:

• Holders of administrative claims, priority tax claims and priority claims will be paid in full in cash;

• The first-lien lenders will receive 100% of the new common stock in the reorganized company, as well as a share of a cash consideration or new term loans.

The first-lien lenders will also receive any unpaid adequate protection payments;

• Second-lien lenders will receive a share of three-year warrants to acquire 2.5% of the new common stock in the reorganized company;

• Holders of general unsecured claims will receive a cash payment equal to their share of $1.1 million, minus the amount of costs and expenses incurred by the committee after the plan effective date in connection with the evaluation, prosecution, objection to or reconciliation of claims.

Under the previous version of the plan, these creditors would have received a share of a cash consideration minus the recovery received by second-lien lenders through the issuance of warrants;

• Holders of first-lien and second-lien guaranty claims will receive a share of holdings cash; and

• Interest holders will receive no distribution.

When it filed for bankruptcy, the company said it would obtain a $50 million three-year exit facility.

The disclosure statement hearing is scheduled for Nov. 1, and the plan confirmation hearing is set for Dec. 20.

Oriental Trading, an Omaha, Neb., direct marketer of party and school supplies, filed for bankruptcy on Aug. 25. The Chapter 11 case number is 10-12636.

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