Rhodes expects to emerge from Chapter 11 by early fall

By Caroline Salls

Pittsburgh, June 22 - Rhodes, Inc. plans to emerge from Chapter 11 bankruptcy by early fall, according to a company news release.

Rhodes filed its plan of reorganization and disclosure statement on Monday with the U.S. Bankruptcy Court for the Northern District of Georgia.

Under the plan, the reorganized company will issue up to 40 million shares of common stock, of which 30 million will be distributed under the plan to holders of general unsecured claims and the remaining 10 million may be issued in connection with exit financing or as the board of directors deems appropriate.

The plan also allows for the future issuance of up to 10 million shares of preferred stock from time to time at the discretion of the board.

Also, the plan authorizes the board to issue warrants for the purchase of the new common stock.

Rhodes, an Atlanta-based furniture retailer, filed for bankruptcy on Nov. 4, 2004. Its Chapter 11 case number is 04-78434.

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