Jackson Hewitt Cleared To Use Lenders' Cash Collateral

Law360, Wilmington (May 25, 2011, 7:26 PM EDT) -- Jackson Hewitt Tax Service Inc. embarked on an expedited course to revamp its balance sheet Wednesday, receiving Delaware bankruptcy court approval to use its lenders’ cash collateral.

The company filed for Chapter 11 protection on Tuesday with a plan in hand to restructure more than $350 million in debt and transfer ownership to bank lenders, including Bayside Capital Inc. and Republic Bank & Trust Co.

The banks are “vastly underwater,” according to Jackson Hewitt attorney Mark McDermott of Skadden Arps Slate Meagher & Flom LLP, with...
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