DIP Agreement Fair To Creditors, Harry & David Says

Law360, New York (April 26, 2011, 7:04 PM EDT) -- Harry & David Holdings Inc. on Monday blasted an unsecured creditors committee’s allegations that its debtor-in-possession loan agreement improperly benefits the company’s controlling shareholder, calling the objections a ploy to delay its exit from bankruptcy.

The DIP agreement consists of a $100 million first-lien revolving loan, provided by UBS AG; a $55 million term loan; and exit financing from Wasserstein & Co. LP, which holds a 60 percent stake in the company. The unsecured creditors took issue with what they called an exorbitant fee Wasserstein stands...
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