Linens Holding Co. ("LNT" or the "Company"), a leading home furnishings specialty retailer operating as "Linens"˜n Things," announced today that the Company and its debtor subsidiaries have filed a Plan of Reorganization and Disclosure Statement (the Plan) with the United States Bankruptcy Court for the District of Delaware. The Plan process has the support of LNT's Senior Lenders and its Official Committee of Unsecured Creditors, as well as an ad hoc committee of holders of its Senior Notes. A hearing regarding the approval of the Disclosure Statement will be scheduled by the Court in the near future. LNT, which filed for Chapter 11 on May 2, 2008, expects to emerge in early 2009.
The Plan calls for the senior lenders to be paid in full and the holders of the Senior Notes to convert the majority of their debt into substantially all of the ownership of the reorganized LNT. Unsecured creditors will receive warrants to purchase common stock in the new company.
"The filing of our Plan of Reorganization is a major milestone in the restructuring of LNT," said Michael Gries, Chief Restructuring Officer and Interim CEO, "and reflects the hard work of the entire LNT team and the creditors' and noteholders' committees."
The Disclosure Statement filed with the Court today contains a profile of the Company, a description of the proposed distribution to creditors and an analysis of the plan, as well as information on the solicitation and approval process. LNT's Plan of Reorganization and Disclosure Statement are available at www.kccllc.net/linensnthings.
LNT also announced that Robert J. DiNicola has submitted his resignation as Executive Chairman of the Company. In his letter of resignation, Mr. DiNicola stated, that the filing of the Plan represents substantial progress toward the goals we outlined in connection with the Chapter 11 filing and the beginning of this final phase of the restructuring is an appropriate time to step down from his executive role. He has agreed to remain a member of the Board of Directors and serve as non-executive Chairman of the Board pending solicitation and approval of the Plan.
"Bob DiNicola has been an important part of LNT's restructuring efforts and one of the reasons why we expect to be able to complete our restructuring in such a short timeframe," added Mr. Gries. "I know I speak for the entire LNT community in thanking Bob as we look forward to emerging as a strong, financially sound and nimble Company, well-positioned for the current retail environment and beyond."
Linens "˜n Things, with 2007 sales of approximately $2.8 billion, is one of the leading, national large format retailers of home textiles, housewares and home accessories. As of December 29, 2007, Linens "˜n Things operated 589 stores in 47 states and seven provinces across the United States and Canada. More information about Linens "˜n Things can be found online at www.lnt.com.
Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to our financial condition, results of operations and business that is not historical information. As a general matter, forward-looking statements are those focused upon future or anticipated events or trends and expectations and beliefs relating to matters that are not historical in nature. The words "believe,""expect," "plan,""intend," "estimate" or "anticipate" and similar expressions, as well as future or conditional verbs such as "will,""should," "would" and "could," often identify forward-looking statements. The Company believes there is a reasonable basis for our expectations and beliefs, but they are inherently uncertain, and we may not realize our expectations and our beliefs may not prove correct. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. The Company's actual results and future financial condition may differ materially from those described or implied by any such forward-looking statements as a result of many factors that may be outside the Company's control. Such factors include, without limitation: the Company's Chapter 11 bankruptcy filing; general economic conditions; changes in the retailing environment and consumer spending habits; relationships with vendors and the availability of merchandise; competition from existing and potential competitors; the amount of merchandise markdowns; loss or retirement of key members of management; increases in the costs of borrowings and unavailability of additional debt or equity capital; impact of our substantial indebtedness on our operating income and our ability to grow; inclement weather and natural disasters; the cost of labor; labor disputes; increased healthcare benefit costs; and other costs and expenses. This list of factors is not intended to be exhaustive.