Court approves Furniture Brands for access to funds
Thomas Russell -- Furniture Today, September 13, 2013
ST LOUIS — Furniture Brands International has received court approval that will allow it to continue to pay its bills and meet other obligations involving the servicing of accounts.
The company announced Thursday that its motions filed Sept. 9 as part of voluntary Chapter 11 bankruptcy filing were approved by the U.S. Bankruptcy Court for the District of Delaware.
This allows the company to access the $140 million debtor-in-possession financing, including an immediate $25 million of new liquidity provided by Oaktree Capital Management L.P.
With this funding, the company can meet its post-petition financial obligations, including payment to employees and suppliers. It also will enable the company to continue shipping and servicing its accounts.
"As a result of this approval, Furniture Brands will be able to continue its day-to-day operations without interruption and can begin to implement the restructuring initiatives necessary under the Chapter 11 process," Furniture Brands Chairman and CEO Ralph Scozzafava said in a statement. "We are highly confident that as a result of these actions we will emerge as an even stronger company."
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