Oriental Trading's disclosure statement OK'd; plan hearing is Dec. 14

By Lisa Kerner

Charlotte, N.C., Nov. 1 - Oriental Trading Co.'s disclosure statement was approved on Monday by the U.S. Bankruptcy Court for the District of Delaware, according to an attorney familiar with the case.

A hearing to confirm the company's plan of reorganization will be held on Dec.14, the attorney said.

As previously reported, last week the administrator and collateral agent for Oriental Trading's second-lien lenders, Wilmington Trust FSB, objected to the disclosure statement, believing it provides "woefully inadequate information" about the valuation of the company's assets, the value of consideration to be received by the second-lien lenders and the proposed treatment of management.

On Oct. 19 Oriental Trading filed an amended plan of reorganization and related disclosure statement to add the support of its official committee of unsecured creditors and amend the treatment for general unsecured creditors.

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.

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.