NEW YORK (Reuters) – Cookie and frozen yogurt company Mrs. Fields Famous Brands LLC has won court approval for its Chapter 11 reorganization plan, which gives it a $10 million, three-year senior term credit facility to fund operations.
The company, known for its Mrs. Fields cookie and TCBY frozen yogurt franchises, said on Oct. 2 it had met the restructuring conditions set forth in its reorganization plan.
Since filing for Chapter 11 bankruptcy protection on Aug. 24, the company has exchanged bondholder debt for cash, new bonds and a controlling equity stake in the reorganized company.
The Salt Lake City-based company, which licenses and franchises about 1,200 locations, had filed a so-called prepackaged bankruptcy reorganization plan that allowed creditors to vote on certain aspects of the plan prior to the bankruptcy filing in court. It’s considered a quicker, more efficient and less expensive way to facilitate a corporate restructuring.
(Reporting by Chelsea Emery, editing by Brad Dorfman)