O'Sullivan plan of reorganization confirmed; expects to emerge in next few weeks

By Caroline Salls

Pittsburgh, March 16 - O'Sullivan Industries Holdings, Inc.'s amended plan of reorganization was confirmed on Thursday by the U.S. Bankruptcy Court for the Northern District of Georgia, and the company plans to emerge from bankruptcy within the next few weeks, according to a company news release.

O'Sullivan also received a commitment for up to $50 million in exit financing from Wachovia Bank.

Proceeds of the revolving credit facility, which will be secured by substantially all the assets of the company, will support the implementation of the plan and provide working capital for the company's ongoing operations.

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 company's 13 3/8% senior subordinated notes due 2009 and the conversion of its secured notes into substantially all of the equity of the reorganized company and $10 million of new secured notes.

O'Sullivan, a Lamar, Mo., manufacturer of ready-to-assemble furniture, filed for bankruptcy on Oct. 14. Its Chapter 11 case number is 05-83076.

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