The Rowe Companies Receives Court Approval of First-Day Motions
21 Septiembre 2006 - 4:41PM
PR Newswire (US)
Home Furnishings Manufacturer Rowe Furniture, Inc. and Retail
Furniture Chain Storehouse, Inc. Granted Authority for Interim DIP
Financing and to Honor Certain Employee and Customer Obligations
MCLEAN, Va., Sept. 21 /PRNewswire-FirstCall/ -- The Rowe Companies
("Rowe"), announced today that it had received approval of
first-day motions presented to the United States Bankruptcy Court
in the Eastern District of Virginia. During hearings held yesterday
before the Honorable Stephen S. Mitchell, Rowe received interim
approval of a $50 million Secured Super Priority
Debtor-in-Possession Facility ("DIP Facility") provided by General
Electric Capital Corporation ("GECC"). The DIP Facility includes
the payment or "roll up" of GECC's pre-petition secured loans to
Rowe. The facility, among other things, requires Rowe to conform to
a budget and for the sale or liquidation of the Storehouse chain. A
hearing to approve the DIP Facility on a final basis will be held
on October 13, 2006. In addition, Rowe obtained approval to pay
pre-petition and ongoing employee wages and to continue various
employee benefit programs. The Court also authorized Rowe to honor
certain pre-petition customer deposits and continue many of its
customer service programs. In addition, Rowe obtained approval to
continue the use of its pre-petition bank accounts and current cash
management system. The first-day orders will enable Rowe to
continue normal business operations without interruption as it
completes its ongoing restructuring plans and initiatives. "We are
very pleased with the Court's approval of the DIP financing and the
rest of the first day motions presented by Rowe. Having secured DIP
financing, we will be able to move forward with business operations
and continue providing our customers with quality products. In
addition, we are optimistic that the DIP financing will offer
assurance to our vendors and suppliers that they will be timely
paid for post-petition services as we complete our restructuring
process," said Gerald Birnbach, President and CEO of Rowe. "The
Court's approval of the first day motions will also enable Rowe to
honor critical employee and customer obligations, while continuing
normal business operations without interruption." On September 18,
2006, The Rowe Companies, along with its two operating
subsidiaries, Rowe Furniture, Inc. and Storehouse, Inc., filed
voluntary petitions under chapter 11 of the United States
Bankruptcy Code in the Eastern District of Virginia. Business and
operations will continue as usual while Rowe pursues various
restructuring options. Please see http://www.administar.net/ for
updates as they become available. Consumer customers and Storehouse
vendors may call 1-866-907-6499. Rowe Furniture vendors may call
1-877-684-3578. Rowe Furniture has been a leading manufacturer of
fine upholstered furniture for the past 60 years. Founded in 1946,
the Company's headquarters are located in McLean, Virginia. In
1999, the Company acquired Storehouse, an Atlanta based home
furnishings retailer, and the name of the Company changed from
"Rowe Furniture Corporation" to "The Rowe Companies," which owns
100% of the stock of the manufacturing and retail subsidiaries,
Rowe Furniture and Storehouse. For more information, please visit
http://www.therowecompanies.com/. Certain of the statements
contained herein should be considered "forward- looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995, which reflect the current views of The Rowe Companies,
Rowe Furniture, Inc., and Storehouse, Inc. (the "Rowe Affiliates")
with respect to current events and financial performance. You can
identify these statements by forward-looking words such as "may,"
"will," "expect," "intend," "anticipate," "believe," "estimate,"
"plan," "could," "should," and "continue" or similar words. These
forward-looking statements may also use different phrases. Such
forward-looking statements are and will be, as the case may be,
subject to many risks, uncertainties and factors relating to the
Rowe Affiliates' operations and business environment which may
cause the actual results of the Rowe Affiliates to be materially
different from any future results, express or implied, by such
forward-looking statements. Factors that could cause actual results
to differ materially from these forward-looking statements include,
but are not limited to, the following: the ability of the Rowe
Affiliates to continue as a going concern; the ability of the Rowe
Affiliates to obtain and maintain any necessary financing for
operations and other purposes, whether debtor-in-possession
financing or other financing; the Rowe Affiliates' ability to
obtain court approval with respect to motions in the Chapter 11
proceeding prosecuted by it from time to time; the ability of the
Rowe Affiliates to develop, prosecute, confirm and consummate one
or more plans of reorganization with respect to the Chapter 11
proceedings; risks associated with third parties seeking and
obtaining court approval to terminate or shorten the exclusivity
period for the Rowe Affiliates to propose and confirm one or more
plans of reorganization, for the appointment of a Chapter 11
trustee or to convert the cases to Chapter 7 cases; the ability of
the Rowe Affiliates to obtain and maintain normal terms with
vendors, suppliers and service providers; the Rowe Affiliates'
ability to maintain contracts that are critical to its operations;
the potential adverse impact of the Chapter 11 proceedings on the
Rowe Affiliates' liquidity or results of operations; the ability of
the Rowe Affiliates to operate pursuant to the terms of its
financing facilities (particularly the financial covenants); the
ability of the Rowe Affiliates to attract, motivate and/or retain
key executives and associates; the ability of the Rowe Affiliates
to attract and retain customers; economic conditions; labor costs;
financing availability and costs; and other risks and uncertainties
listed from time to time in the Rowe Affiliates' reports to the
SEC. There may be other factors not identified above of which the
Rowe Affiliates are not currently aware that may affect matters
discussed in the forward-looking statements, and may also cause
actual results to differ materially from those discussed. The Rowe
Affiliates assume no obligation to update such estimates to reflect
actual results, changes in assumptions or changes in other factors
affecting such estimates other than as required by law. Similarly,
these and other factors, including the terms of any reorganization
plan ultimately confirmed, can affect the value of the Rowe
Affiliates' various pre-petition liabilities, common stock and/or
other equity securities. Accordingly, the Rowe Affiliates urge that
the appropriate caution be exercised with respect to existing and
future investments in any of these liabilities and/or securities.
For more information, please contact H. Jason Gold, Wiley Rein
& Fielding, LLP, attorney for the debtor and
debtor-in-possession, at 703.905.2825 or . DATASOURCE: The Rowe
Companies CONTACT: H. Jason Gold, of Wiley Rein & Fielding,
LLP, +1-703-905-2825, , for The Rowe Companies Web site:
http://www.therowecompanies.com/
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