Harry & David Holdings Plan Filed

Harry & David Holdings filed with the US Bankruptcy Court on May 23 a Joint Plan of Reorganization (the "Plan") and Disclosure Statement, which has the support of the Official Committee of Unsecured Creditors and the holders of approximately 81% of the company’s public notes. With this filing, the company intends to exit bankruptcy in late Summer 2011. The proposed plan will allow the company to convert all of its approximately $200 million of outstanding public notes into equity of the reorganized company. The Plan also includes an equity capital raise that will generate $55 million in equity financing upon the company's emergence from chapter 11. A group of the company's existing note holders have agreed to backstop the equity capital raise. Harry & David will use proceeds from the equity capital raise to satisfy obligations arising from its $55 million post-petition term loan. Additionally, the company has a $100 million revolving loan commitment to finance its operations after the company exits chapter 11 which will replace its current $100 million post-petition revolving loan facility. The Court scheduled a June 24, 2011 hearing to consider this Disclosure Statement.