September 18, 2010 by staff
Oriental Trading, OTC Holdings is seeking Chapter 11 cases be consolidated with those presented in his own name and for Oriental Trading, OTC Investors Corp., Express Oriental Trading Fun & Marketing.
Private equity firm Carlyle Partners in 2007 invested about 260 million and 68.06% and the preferred stock purchased from Oriental Trading Brentwood Associates, which bought the company in 2000. Brentwood Associates Private Equity has 13.74% of preferred stock and Associates Brentwood Co-investors own 10.99%.
The company said in a statement it has reached an agreement on the terms of a previously arranged plan of reorganization with its first lien lenders to reduce debt and improve its capital structure and operational flexibility.
Under the plan, Oriental Trading will reduce consolidated debt by more than 70% to 200 million, according to Eastern Commerce CEO Sam Taylor in a statement. For the fiscal year ended April 3, OTC Holdings had assets totaling 463.3 million and liabilities of $ 756,600,000 and net sales of 485.4 million y.
“We are very pleased with the continued support we have received from our lenders and we believe this process will lead to a sustainable basis for long-term financial company,” Taylor said in a statement. Oriental Trading is a profitable company with a strong underlying business model and continues to generate double-digit operating margins.
Oriental Trading said it would operate its business without interruption during the restructuring process.
In addition, the company said Oriental Trading has obtained a debtor in possession financing facility of 40 million and a group of its existing lenders, which provide sufficient funds to operate its business during the restructuring process.
According to the list of top 30 unsecured creditors filed with the court, must Oriental Trading Logistics World Color and more than 2.76 million, UPS and 706 253, Epsilon Data Management and 570,000 and 445,035 and FedEx.
Oriental Trading has outstanding loans of the bank and 185.8 million and 85.7 million and through Wilmington Trust, said the report.
“With a large stock of debt, OTC was little room for maneuver”, said Stuart Rose, chief executive of investment firm Tully & Holland. “The hiccups of no growth – or even declining sales and profitability caused by economic recession and other factors – a business trip he was handcuffed by its large stock of debt.”
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