O'Sullivan Industries interim CEO Rick Walters signed off on the proposed reorganization plan and says no liquidation is in the offing for the company.
According to documents filed Wednesday in U. S. Bankruptcy Court for the Northern District of Georgia, Walters said, "Based upon my personal knowledge of the plan, absent severe, unique, and unexpected circumstances, I do not believe that confirmation of the plan is likely to be followed by liquidation or the need for further financial reorganization of the debtors or any successors thereof. There is a reasonable prospect that the debtors will meet their financial obligations under the plan, and I believe that the plan is feasible."
At the same time, a liquidation plan is included in the plan and Walters says he believes "it presents an accurate picture of the realities of a potential liquidation scenario of the debtors' assets."
Under the plan, O'Sullivan Industries, which entered Chapter 11 bankruptcy with $250 million in debt, will emerge from it in the near future with approximately $46 million in debt, and will have a new line of credit of up to $50 million "and a business plan that would allow (the company) to generate significant cash flow in their first year post-emergence and to grow EBITDA to approximately $13.7 million in fiscal year 2007."
The plan would enable O'Sullivan Industries to continue "to operate as a viable entry," Walters said.
A newly-configured board of directors for O'Sullivan Industries has been proposed, but is being kept from the public and is not included in the open documents in U. S. Bankruptcy Court.
The Lamar Democrat reports the company is settling its outstanding debt to the city of Lamar for 17 cents on the dollar. Nothing like maintaining a good neighbor policy.