Bankruptcy court OK's Mrs. Fields first day motions
August 27, 2008
by Eric Schroeder
SALT LAKE CITY — Mrs. Fields’ Original Cookies, Inc. said it has received bankruptcy court approval of all of its first day motions, including approval to continue to pay employee salaries, wages, and benefit programs, to pay vendors in the normal course of business for goods and services provided, and to maintain uninterrupted delivery of products and services to the company’s franchisees and customers.
Also included in the court’s approvals was authorization to access the necessary funds from the approximately $90 million in previously restricted deal proceeds to fund business operations during the Chapter 11 process. Mrs. Fields said it is pursuing a $10 million credit line that will be used, in conjunction with cash flows from normal operations, to support all of its go-forward operations and working capital needs upon emergence from Chapter 11.
"We were very pleased with the court’s positive response to our first day motions," said Michael Ward, interim co-chief executive officer. "Receiving approval so quickly places Mrs. Fields in the best possible position as we move toward completing our restructuring."
Mr. Ward said Mrs. Fields expects to receive court approval of its reorganization plan at an Oct. 2 hearing.