Former Oriental Trading granted court OK to amend confirmed plan

By Caroline Salls

Pittsburgh, Feb. 10 - OTC Holdings Corp., formerly Oriental Trading Co., received court approval to make changes to its fifth amended joint plan of reorganization, which was confirmed on Dec. 16, according to a Thursday filing with the U.S. Bankruptcy Court for the District of Delaware.

The company said as a result of strong investor interest in the new term loans in the loan syndication market, it will increase by 10% the size of the new term loan to be issued on the plan effective date.

In addition, OTC received court approval to up the principal amount of the loans to $220 million from $200 million, increasing the amount distributed to the first-lien lenders by $10 million, the motion said.

Also, the company would issue new five-year tranche A warrants to purchase 5.65% of the shares of the reorganized company's new common stock, up from 5% under the original plan, and 5.15% of the five-year tranche B warrants, up from 4.5%, if holders of class 4 and class 8 claims vote to accept the plan.

If these creditor classes vote to reject the plan, the company would issue three-year warrants to purchase 2.5% of the new common stock.

Oriental Trading, an Omaha 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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