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O'Sullivan Receives Final Approval of $35 Million DIP Financing and Authority to Honor Customer Programs

Furniture World News


O'Sullivan Industries Holdings, Inc. said that it has received final approval from the Bankruptcy Court of its debtor in possession post petition financing with The CIT Group/Business Credit, Inc. and other lenders. The Final Order granted by Judge Mullins allows O'Sullivan to borrow up to $35 million under certain conditions and subject to borrowing availability. O'Sullivan also said that the Court has granted its Final Order authorizing O'Sullivan to honor pre-petition customer credit, return and warranty programs. This order will allow O'Sullivan to utilize all programs in place with customers and to provide a continued high level of service. Commenting on these orders, Rick Walters, interim CEO, stated, "These orders enhance the ongoing stability of O'Sullivan by providing liquidity through the bankruptcy process. Further, our ability to service our customers will remain unaffected by the filing. We are pleased that our restructuring is proceeding in an orderly fashion and we look forward to exiting Chapter 11 as quickly as possible." About O'Sullivan Industries O'Sullivan has been in business since 1954. The company designs, manufactures and distributes ready-to-assemble furniture and related products, including a growing line of desks, computer work centers, home entertainment centers, bookcases, shelving, stands for televisions and audio equipment, bedroom furniture pieces, garage storage units and commercial furniture. The majority of O'Sullivan products are sold through large retailers and office supply stores. O'Sullivan employs approximately 1,300 people, primarily at production facilities in Lamar, Missouri, and South Boston, Virginia. The company has its headquarters in the Atlanta suburb of Roswell. On Friday, October 14, 2005, O'Sullivan Industries Holdings, Inc., and certain of its direct and indirect subsidiaries filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code.