Aug 22, 2008

Hines Horticulture Files for BankruptcySource: Various

Hines Horticulture, Inc., one of the largest commercial nursery operations, announced last week that it filed for bankruptcy. The company’s board of directors determined that a Chapter 11 filing was necessary to maximize value for all stakeholders in the company. The company also announced that it has agreed to the terms of an asset purchase agreement with an affiliate of Black Diamond Capital Management.

The filing will allow Hines to operate its business without interruption and obtain necessary financing while implementing a sale process in a controlled, court-supervised environment. In conjunction with the filing, the company will receive up to $62 million from its existing lenders in debtor-in-possession financing, which is subject to a number of conditions, including further budget approvals.

To ensure the Chapter 11 process has minimal impact on the company’s customers, Hines has asked for court approval to continue to honor its current customer incentive programs, including volume rebates, returns and exchanges.

For more information about Hines Horticulture, go to www.hineshorticulture.com.