Nebraska Book Co., the operator of a chain of college bookstores, won court approval of a restructuring plan that eliminates about $270 million in debt, Bloomberg News reported yesterday. Bankruptcy Judge Peter Walsh approved the company's reorganization plan at a hearing yesterday saying that he would sign the order once it is finalized. Nebraska Book sought bankruptcy protection last June with a pre-arranged plan to exit court protection within a few months. That plan unraveled after credit markets tightened and the company was unable to obtain $250 million in exit financing. Under the new plan, senior secured noteholders owed about $200 million will get virtually all of the reorganized company's equity, plus $100 million in new notes and the right to participate in an $80 million exit loan. The noteholders are projected to recoup about 81 cents on the dollar.
