Bush Industries, Inc. Exits Bankruptcy

Furniture World Magazine

Bush Industries has emerged from Chapter 11 bankruptcy protection pursuant to a Plan of Reorganization previously approved by the U.S. Bankruptcy Court on October 13, 2004.  The Plan became effective on November 12, 2004 and the company is now privately owned by a group led by DDJ Capital Management LLC and JPMorgan Chase Bank. Bush filed for bankruptcy protection on March 31, 2004. "This is a great day for the employees, customers, and vendors of Bush Industries," said Michael Buenzow, a senior managing director of FTI Consulting (NYSE: FCN), who is currently serving as Interim CEO of Bush Industries. "In a relatively short period of time, we successfully completed the reorganization process. We secured new financing, and significantly reduced our bank debt, operating costs and interest expense.  We are extremely happy for all of our employees and their families.  As a result of cooperatively working together with our customers, suppliers and creditors, we have solidified the long-term viability of the company and have saved 2,600 jobs, 1,500 of which are in Jamestown, NY and Erie, PA."   The Plan provides for new financing through 2006, converts $90 million of bank debt to equity, pays all vendors and unsecured creditors in full and provides for a distribution of $1.6 million to the Company's previous shareholders whose common stock was cancelled as part of the Plan.   "We are very excited about the future," said Rob Ayres, President of Bush Industries. "We have some exciting new business furniture in the pipeline. We received prestigious design recognition awards at the October High Point Market for two home entertainment and one home office group. We are also gaining significant competitive advantages that come with being a private company in a highly competitive industry." 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 facilities in New York, Pennsylvania, North Carolina, Florida, Mexico, Germany, and China.  For more information on Bush Industries, Inc., please visit the Company's website at www.bushindustries.com