Simmons continues operations under Chapter 11
By Furniture Today Staff -- Furniture Today, November 30, 2009
ATLANTA — Bedding major Simmons filed a prepackaged Chapter 11 reorganization plan on Nov. 16. The filing, which was expected, does not include Simmons' Canadian and Puerto Rican operations.
Under the plan, Simmons and its subsidiaries will continue normal operations during the Chapter 11 process and the company's senior secured bank lenders, trade vendors, suppliers and employees will be paid in full, the company said. Simmons said it expects to emerge from Chapter 11 within 60 days.
The plan provides for the acquisition of Simmons Bedding and its U.S. and foreign subsidiaries by affiliates of Ares Management and Teachers' Private Capital, the owners of Serta.
The buyers say they'll manage Simmons and Serta as separate brands.
The plan and related transactions will allow Simmons to reduce its debt from about $1 billion to about $450 million.
“Today's filings are a necessary step toward the successful conclusion of our financial restructuring,” said Simmons President Steve Fendrich.
The filing follows the successful completion of the solicitation process of lenders and note holders. Simmons said that 100% of the claims voted by Simmons' senior lenders, and 94.5% and 98.8% of the claims voted by holders of two other classes of debt, voted to accept the prepackaged plan.
Court documents show that Simmons' 20 largest unsecured trade creditors are owed more than $12.6 million. They are among the claim that will be paid in full under the company's plan.
Components supplier Leggett & Platt is owed $3.79 million. Foam supplier Foamex is owed $1.39 million, followed by South American mattress producer International Mattress at $1.24 million and foam supplier Future Foam Inc. at $1.08 million.
Other major unsecured trade creditors include Davis Wire, $579,454; Hanes Converting, $574,889; Louisville Bedding, $530,988; Vita Nonwovens, $371,408; Global Textile Alliance, $356,909; DuPont, $343,374; Barrettewood USA, $327,534; Polymer Group, $321,813; Bekaert Textiles, $287,795; Ashley Furniture, $279,608; Flexible Foam Products, $277,992; Culp Inc., $247,430; Creative Vinyl/Fabrics, $225,248; FFKR Architects, $190,920; Latex International, $186,054; Mid South Extrusion, $172,263; and King Kamehameh Inc., $165,731.
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