Court confirms Mrs. Fields plan of reorganization

by Eric Schroeder
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SALT LAKE CITY — Mrs. Fields’ Original Cookies, Inc. plan of reorganization has been confirmed by the U.S. Bankruptcy Court for the District of Delaware. As part of the plan, Mrs. Fields said it has acquired a 3-year, $10 million senior term credit facility from a select group of its note holders that will be used, in conjunction with cash flows from normal operations, to support the company’s go-forward operations and working capital needs. In addition, the company said it has improved its balance sheet by exchanging bondholder debt for cash, new bonds and a controlling equity stake in the reorganized company. "This is a remarkable day for everyone associated with Mrs. Fields," said Michael Ward, interim co-chief executive officer. "We are very pleased to have a confirmed plan of reorganization only 40 days after filing our prepackaged bankruptcy petitions, and see this as a testament to the hard work of our outstanding employees, franchisees and vendors, and to the dedication of our loyal customers."

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