Simmons Co. misses $7.9 million interest payment
Bedding major working on financial restructuring
Larry Thomas -- Furniture Today, January 16, 2009
ATLANTA — Bedding major Simmons Co. said it missed a $7.9 million interest payment that was due Thursday on $200 million in senior subordinated notes.
The company, which is currently working with its lenders and debt-holders on a financial restructuring, said it will be in default on the notes if the interest is not paid within a 30-day grace period.
The $200 million in notes are not covered by a forbearance agreement that Simmons and its senior lenders signed in December. That agreement covers $465 million in term loans and about $75 million in a revolving credit line and letters of credit.
Simmons has total debt of about $935 million.
In a statement, Simmons President Stephen Fendrich expressed confidence that a restructuring would be successfully completed.
"Simmons continues to make progress working with its various financial stakeholders to design and implement a restructuring in a manner that maximizes value and preserves and protects its relationships with customers and suppliers," Fendrich said.
The company said it had $49.7 million cash on hand as of Wednesday to pay operating expenses.
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