Harry & David Holdings Inc. received approval of its reorganization plan and said it's set to emerge from bankruptcy protection on Sept. 13.
U.S. Bankruptcy Court Judge Mary Walrath in Wilmington, Del., on Monday signed the final order approving the plan after giving her tentative endorsement Aug. 11.
“We've reached a significant milestone for Harry & David and are excited to emerge from the Chapter 11 process as a stronger company,” Kay Hong, the Medford, Ore.-based company's chief restructuring officer and interim CEO, said in a statement Tuesday.
Harry & David's modified plan resolved the objection of the Pension Benefit Guaranty Corp. over the classification of its claim. Under the plan, the PBGC will get a claim of $36 million and in return won't appeal the judge's decision to terminate the pensions of more than 2,700 past and current employees. PBGC's claim will get the same cash treatment as unsecured claims.
Harry & David filed for bankruptcy in March, blaming competition from Internet retailers and warehouse-style stores and the recession.