Sep 19, 2008

Hines Secures FinancingSource: Home Channel News

Hines Horticulture has secured $62 million in debtor-in-possession financing, which the commercial grower will use to continue operations as it seeks to sell its assets. The loans, approved by the U.S. Bankruptcy Court for the District of Delaware in Wilmington, come from three pre-petition lenders: Bank of America NA, PNC Bank NA and GMAC Commercial Finance, reports Home Channel News.

The Irvine, Calif.-based company – the industry’s largest producer of ornamental shrubs and container-grown plants in the country – filed for Chapter 11 in late August, citing a rise in production costs, pricing pressure from large customers and weather-related factors.

Black Diamond Capital Management, Hines’ largest unsecured creditor and the holder of a majority of its $175 million in senior subordinated notes, has offered $58 million in cash for the company, according to court papers.

Hines sold to more than 6,670 retail outlets, and its list of customers included big players such as Home Depot, Wal-Mart and many independent garden centers.

Hines’ products are mostly sold under the “Hines Nurseries” trade name. The company operates seven commercial nurseries across the country where plants are grown for sale to retailers and other businesses.