Harry & David Holdings said today it expects to exit Chapter 11 court protection on Sept. 13 after U.S. Bankruptcy Judge Mary Walrath signed the final order Monday in Wilmington, Del., approving the company's reorganization plan.

Harry & David Holdings said today it expects to exit Chapter 11 court protection on Sept. 13 after U.S. Bankruptcy Judge Mary Walrath signed the final order Monday in Wilmington, Del., approving the company's reorganization plan.

"With the court's official confirmation of our plan, we've reached a significant milestone for Harry & David and are excited to emerge from the Chapter 11 process as a stronger company, better positioned for long-term profitable growth," said Kay Hong, chief restructuring officer and interim chief executive officer in a statement. "We remain grateful for the unwavering support of our dedicated partners, employees and customers throughout the restructuring process."

The plan, which was tentatively approved on Aug. 11, allows the Medford-based gift and gourmet food company to convert all of its approximately $200 million of outstanding public notes into equity in the reorganized company, generating $55 million in equity financing when the company emerges from Chapter 11. A group of existing noteholders have agreed to backstop the equity capital raise. Harry & David will use the capital to pay off obligations arising from its $55 million post-petition term loan. Additionally, the company has a $100 million revolving loan available to finance operations.

"This fall, we plan to build on the momentum of our Fruit of the Month Club with an outstanding pear harvest," Hong said. "We are thrilled with the new gifts that have been developed for the holiday season, available beginning in mid-September, and we look forward to continuing to deliver a terrific gift experience and unparalleled customer service as Harry & David has done for generations."

The company filed for Chapter 11 protection in late March.

— Greg Stiles