IRVINE, Calif., Oct. 13 /PRNewswire/ -- Hines Nurseries LLC and certain of its affiliates (collectively, "Hines Nurseries" or the "Company") today announced that the Company has filed voluntary petitions in U.S. Bankruptcy Court for the District of Delaware (the "Bankruptcy Court") for relief under Chapter 11 of the U.S. Bankruptcy Code.
Hines Nurseries has been exploring restructuring options in recent months, including efforts to extend a line of credit for purposes of continuing its operations.
The Company noted that it has worked diligently to resolve its liquidity and financing issues that were brought on by greater than expected declines in revenue. This decline in revenue stems primarily from weaker consumer demand for nursery products due to the overall sustained general weak economic conditions and significant increases in production and distribution costs within the industry.
As a result, to protect the interests of all of its stakeholders, the Company's Board of Directors decided to file for court-supervised protection under Chapter 11.
In support of this process, the Company said that, subject to approval of the Bankruptcy Court it has secured $5 million in interim debtor-in-possession financing, and expects to have up to $20 million on a final basis subject to court execution of definitive documentation and subject to final Bankruptcy Court approval. The Company noted in its filing that it believes that Chapter 11 protection and the financing it secured should enable it to continue operations in the ordinary course. To that end, the Company is seeking approval from the Bankruptcy Court for a variety of First Day Motions, including requests to make wage and salary payments and provide other benefits to current employees. The motions filed by the Company are typical in most Chapter 11 filings. The Company intends to pay providers of goods and services purchased and delivered post-petition in the ordinary course of business.
The Company would like to thank its customers and vendors for their continued support during this process. The Company does not anticipate an interruption in services, and believes that its customers can continue to place, with confidence, their orders for the spring 2011 season. The Hines management team and its Board of Directors also appreciate the ongoing loyalty of its employees, whose dedication and hard work are critical to its success and to the future of the Company.
The Company's main Chapter 11 case has been assigned case number 10-13308. Additional information about the Company's restructuring, including access to Court documents and other general information is available free of charge at the website maintained by the Company in these Chapter 11 cases: http://dm.epiq11.com/CHG.
About Hines Nurseries LLC: Hines Nurseries LLC is the leading operator of commercial nurseries in North America, producing one of the broadest assortments of container-grown plants in the industry. The Company sells nursery products primarily to the retail segment, which includes premium independent garden centers, as well as leading home centers and mass merchandisers. Learn more at www.hineshort.com.
Dan Margolis, for Hines Nurseries LLC, 213-452-6472
SOURCE Hines Nurseries LLC