Mrs. Fields: After the Cookie Crumbledby
In August, we reported on this blog that cookie and frozen yogurt franchisor Mrs. Fields planned to file for bankruptcy protection in order to help restructure its business. According to thedeal.com, last week, the Salt Lake City-based company won confirmation on its prepackaged reorganization from the US Bankruptcy Court for the District of Delaware. However apparently, the confirmation did not come without some resistance. According to the WSJ, a number of Mrs. Fields frozen yogurt franchises as well as the Internal Revenue Service objected to the plan and urged the court to include additional protections. The company’s plan would slice $145.7 million in note debt while giving noteholders the majority of the company’s equity. As proposed, noteholders would swap their securities for $195.7 million in notes for $90 million in cash, $50 million in new senior secured notes and 87.5% of the company’s new common stock.