O'Sullivan disclosure statement approved; plan confirmation hearing set for March 16

By Caroline Salls

Pittsburgh, Feb. 13 - O'Sullivan Industries Holdings, Inc. reached agreement with the official committee of unsecured creditors for its Chapter 11 case and the controlling holders of its 10.63% senior secured notes due 2008 on a consensual plan of reorganization and received approval for its disclosure statement, according to a company news release.

A plan confirmation hearing is scheduled for March 16.

The plan incorporates a cash payment for general unsecured creditors and a potential additional settlement for all vendors and utility providers electing to participate, a warrant offering for the 13 3/8% senior subordinated notes due 2009 and the conversion of the secured notes into substantially all of the equity of the reorganized company and $10 million of new secured notes.

"This is an important milestone in our Chapter 11 process and continues on our timeline to emerge from bankruptcy within the next few months," interim chief executive officer Rick Walters said in the release.

O'Sullivan, a Lamar, Mo., manufacturer of ready-to-assemble furniture, filed for bankruptcy on Oct. 14 in the U.S. Bankruptcy Court for the Northern District of Georgia. Its Chapter 11 case number is 05-83076.

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