Bankruptcy Updates

Jackson-Hewlett
Jackson-Hewitt Tax Service filed with the US Bankruptcy Court on August 8, 2011 an Amended Joint Prepackaged Chapter 11 Plan of Reorganization. The company also filed Plan Supplements for its Chapter 11 Plan of Reorganization. On August 9, the US Bankruptcy Court signed an order approving Jackson-Hewitt Tax Service's Disclosure Statement and confirmed the company's Amended Joint Prepackaged Plan of Reorganization. Under the Plan, the Debtors current secured lenders will receive their share of a new $100 million term loan and all of the equity in the reorganized company, and existing stockholders will receive nothing. The company anticipates entering into a new $115 million revolving credit facility to fund operations until the new tax season begins.

Harry & David Holdings Pension Plan
The US Bankruptcy Court on August 9, 2011 approved Harry & David Holdings' motion for an order determining that the financial requirements for a distress termination of its defined benefit pension plan are satisfied and approving a distress termination of the pension plan. On July 29, 2011, the Pension Benefit Guaranty Corporation (PBGC) filed with the Court an objection to the company's' Second Amended Chapter 11 Plan of Reorganization. According to PBGC, the Plan should not be confirmed because it is contingent upon the termination of the defined benefit pension plan, which would be-according to the PBGC-improper under the Employee Retirement Income Security Act.