Harry & David Files For Ch. 11 With $198M Lender Deal

Law360, New York (March 28, 2011, 1:50 PM EDT) -- Harry & David Holdings Inc. filed for Chapter 11 protection Monday in Delaware in a prearranged deal with lenders that would convert $198 million in senior notes into equity for the cash-poor gourmet gift basket company.

The company filed its petition in the U.S. Bankruptcy Court for the District of Delaware on the heels of disappointing holiday sales in 2010 that left it short on cash and unable to keep borrowing on a $105 million revolving line of credit.

The Medford, Ore.-based company, which brought in...
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