Harry & David Emerging From Chapter 11

The US Bankruptcy Court on August 30, 2011 confirmed Harry & David Holdings' Chapter 11 Plan of Reorganization, with an anticipated emergence from bankruptcy protection on or around September 13, 2011. The plan allows the company to convert all of its approximately $200 million of outstanding public notes into equity of the reorganized company and includes an equity capital raise that will generate $55 million in equity financing upon emergence. A group of the company's existing noteholders have agreed to backstop the equity capital raise. Harry & David will utilize proceeds from the equity capital raise to satisfy obligations arising from its $55 million post-petition term loan. Additionally, the company obtained a $100 million revolving loan commitment to finance operations after exiting Chapter 11.