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Creditors Call Harry & David DIP Agreement Unfair

Law360 (April 22, 2011, 5:53 PM EDT) -- Harry & David Holdings Inc.’s debtor-in-possession loan agreement improperly benefits the gourmet gift basket company’s controlling shareholder, Wasserstein & Co. LP, at the expense of other creditors, a committee of unsecured creditors said in an objection filed Thursday in Delaware.

The Medford, Ore.-based company filed for bankruptcy in March, along with three affiliates, listing $304 million in assets and $361 million in liabilities and citing increased Internet competition and a dismal 2010 holiday season. Harry & David brought in about $416 million in revenue for the...
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