Bush Industries, Inc. to Emerge From Chapter 11 Bankruptcy

Furniture World Magazine

The United States Bankruptcy Court in Buffalo, NY yesterday confirmed the reorganization plan of Bush Industries. The reorganization plan allows Bush to emerge from chapter 11 as a privately held company on or about October 31, 2004. Bush filed for bankruptcy protection on March 31, 2004.   "We've been able to reorganize and recapitalize Bush Industries without any loss to our customers and suppliers," said Rob Ayres, President of Bush Industries. "The reorganization would not have been possible without the faithful support of our customers, suppliers and employees. I would like to express my deepest appreciation for everyone's effort that allowed Bush Industries to emerge from bankruptcy within seven months."   "The Plan of Reorganization provides new financing through 2006, converts $90 million of bank debt to equity, pays all vendors and unsecured creditors in full and provides a distribution of $1.6 million to shareholders,” said Michael Buenzow, a senior managing director of FTI Consulting, and who is currently serving as interim CEO of Bush Industries.   Mr. Buenzow continued, “The cost reductions we’ve made and the new capital structure solidly position the Company for future prosperity. We received significant support from our lenders during the reorganization process. Their interest has been and will continue to be the long-term health and success of Bush Industries. Our lending group, which is led by JP Morgan Chase and DDJ Capital Management, has significant financial resources to facilitate Bush's future growth."   The Company will continue to operate along three business segments: Bush Furniture-North America, Bush Furniture-Europe, and Bush Technologies.  Headquartered in Jamestown, New York, the Company employs approximately 2,600 people and has operations in North America, Mexico, Germany, the United Kingdom, and China.