Friedman’s says it’s ready to emerge from bankruptcy

Bankrupt jewelry retailer Friedman’s Inc. has filed a reorganization plans and expects to emerge from Chapter 11 in November.

Savannah, Ga.-based Friedman’s said that under the plan, all existing equity interests will be canceled when it emerges from Chapter 11. Its 2005-2008 business plan anticipates the company’s return to profitability in fiscal 2007.

The plan provides that proposed plan investor Harbert Distressed Investment Master Fund Ltd. will get nearly all of the new equity interests in the reorganized Friedman’s, except for management grants, on account of its additional anticipated equity investment and in satisfaction of all claims held by Harbert in the company’s Chapter 11 cases, including its $25.5 million Term debtor-in-possession loan and other claims.

The proposed plan of reorganization was filed Aug. 4 in U.S. Bankruptcy Court for the Southern District of Georgia.