Aurora Foods gets approval for reorganization plan

By Reshmi Basu

New York, Feb. 23 - Aurora Foods Inc. obtained approval for its reorganization plan from the U.S. Bankruptcy Court for the District of Delaware on Friday. The court also overruled all objections to the plan that had been filed by some of the company's debt holders and shareholders.

Any appeals to the court ruling must be filed by March 1.

The St. Louis-based food company expects to complete the plan, including its pending merger with Pinnacle Foods Holding Corp., by March 31, barring any delays resulting from any appeals to the ruling.

"Today's action is a big step forward in our ongoing restructuring and planned merger with Pinnacle Foods," said Dale F. Morrison, chairman and interim chief executive officer, in a news release. "Our combination with Pinnacle will create a strong branded foods company that provides high quality products and services to its customers."

Holders of Aurora's 8¾% senior subordinated notes due 2008 and 9 7/8% senior subordinated notes due 2007 will receive either cash at the rate of $0.50 per dollar of principal amount or equity in the combined company at $0.53 per dollar of principal amount. Holders selecting equity will also receive subscription rights to increase their investment in the combined company.

Aurora Foods filed for Chapter 11 protection on Dec. 8.

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