DAMASCUS, Ore. — International Garden Products, Inc. (“IGP” or “the Company”) today announced it has received approval from the United States Bankruptcy Court for the District of Delaware for all of the First Day Motions that the Company believes will enable it to continue to conduct its business during the reorganization, including operations of its Iseli Nursery and Weeks Wholesale Rose Grower affiliates.
Included among the motions, IGP received approval to use the $7.5 million in Debtor-in-Position (DIP) financing that it secured from a group led by Harris Bank. IGP said it believes DIP facility will be adequate to meet the needs of Iseli and Weeks and to continue operations during the reorganization process.
In addition, the Company received approval to use cash collateral; to continue making wage and benefit payments and expense reimbursement payments to employees; to continue making commission payments to independent contractors, and to continue its current cash management system for operations.
The company noted that securing court approval of its First Day Motions was a critical first step in IGP’s court-supervised reorganization process. These approvals will allow Iseli and Weeks to continue operations while the Company focuses on resolving several issues including three contingent liability issues totaling approximately $27.2 million that have negatively affected finances. The Company is confident that this process will allow both Iseli and Weeks to become much stronger, and better positioned, to capitalize on industry opportunities.
IGP and four of its affiliates, including Iseli and Weeks, filed voluntary petitions for Chapter 11 reorganization on Oct. 4, 2010. The case number for IGP’s filing is 10-13207-KJC. Additional information about the filing can be found on the Company’s case website, www.gcginc.com/cases/igp.
About International Garden Products
International Garden Products, Inc. (“IGP”) was incorporated in 1996 as a holding company for Iseli Nursery, Inc. (“Iseli”), California Nursery Supply (“CNS”), Weeks Wholesale Rose Grower (“Weeks”), and Old Skagit, Inc. (“Old Skagit”). The company’s operating businesses, Iseli and Weeks, focus primarily on growing horticultural products for nationwide sale to independent garden centers, landscape suppliers, landscapers and similar parties. Iseli is known in the industry as the premium source of dwarf conifers, Japanese maples and unique companion plants. Weeks is one of the largest wholesale breeders and growers of premium roses in the U.S.
Source: International Garden Products