Frederick’s of Hollywood filed a reorganization plan Friday to emerge from Chapter 11 bankruptcy.
The plan, filed with the U.S. Bankruptcy Court, includes converting significant debt to equity, a liquidity provision established by members of the company’s lender group, budgeted capital and marketing expenditures and the anticipated continuation of the firm’s senior management team, the company said.
The unsecured creditors’ committee and the company’s secured lenders are expected to support the proposed plan, the firm said.
“This is a sensible plan which includes investment for future growth of the company, including capital expenditures for new stores, new merchandise and marketing,” CEO Linda LoRe said in a statement.
The company expects to emerge from bankruptcy protection before the end of the year.
Frederick’s of Hollywood, based in Hollywood, CA, filed for bankruptcy protection in July 2000.
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