Mrs. Fields Plan of Reorganization Confirmed
SALT LAKE CITY--(BUSINESS WIRE)--Mrs. Fields' Original Cookies, Inc. (the "Company" or "Mrs. Fields"), announced today that it has successfully satisfied the restructuring conditions set forth in its Plan of Reorganization (the "Plan") and that the Plan has been confirmed by the United States Bankruptcy Court for the District of Delaware. In conjunction with the Plan, Mrs. Fields has:
- Acquired a 3 year, $10 million senior term credit facility from a select group of its note holders that will be used, in conjunction with cash flows from normal operations, to support the Company's go-forward operations and working capital needs; and
- Improved the Company's balance sheet by exchanging bondholder debt for cash, new bonds and a controlling equity stake in the reorganized company.
"This is a remarkable day for everyone associated with Mrs. Fields," commented Michael Ward, Interim Co-Chief Executive Officer. "We are very pleased to have a confirmed Plan of Reorganization only 40 days after filing our prepackaged bankruptcy petitions, and see this as a testament to the hard work of our outstanding employees, franchisees and vendors, and to the dedication of our loyal customers."
Through the bankruptcy process, Mrs. Fields was effectively able to address both long and short-term financial challenges and create a solid foundation for the future success of its brands. The Company now has a stronger balance sheet and the cash to fund both operations and growth within each of its business units: franchising, gifting, branded retail, and licensing.
Blackstone Advisory Services L.P. acted as the financial advisor to Mrs. Fields.
About Mrs. Fields' Original Cookies, Inc.
The Company is a well established franchisor in the premium snack food industry, featuring Mrs. Fields® and TCBY® as its core brands. Through its franchisees' retail stores, it is one of the largest retailers of freshly baked, on-premises specialty cookies and brownies in the United States of America (the "United States") and the largest retailer of soft-serve frozen yogurt with live active cultures in the United States. In addition, it operates a gifts and a branded retail business and has entered into licensing arrangements that attempt to leverage awareness of its core brands among its retail customer base. Its franchise systems operate through a network of more than 1,200 franchised and licensed locations throughout the United States and in 22 foreign countries. The Company is headquartered in Salt Lake City, Utah. On August 24, 2008, Mrs. Fields and certain of its subsidiaries filed voluntary bankruptcy petitions under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.