KPS’ bid for Furniture Brands approved by bankruptcy court
From Furniture Brands:
Furniture Brands International today announced that the United States Bankruptcy Court for the District of Delaware has declared an affiliate of KPS Capital Partners as the winning bidder in the auction to acquire substantially all of the Company’s assets. Furniture Brands and KPS expect to complete the transaction in the next several business days.
Ralph Scozzafava, Chairman of the Board and CEO of Furniture Brands, said: “We congratulate KPS and firmly believe that this transaction is the best outcome for all of our stakeholders. KPS has a long track record of providing companies that have undergone restructurings with the operational expertise and financial strength they need to preserve their market leadership as strong standalone businesses positioned for future growth. We are quite pleased that KPS has extended an offer of employment to substantially all of our employees who will help build a successful future for Furniture Brands.”
On October 3, 2013, KPS was named as the “stalking horse” bidder in the Court-supervised sales process under Section 363 of the United States Bankruptcy Code. KPS also provided Furniture Brands with a $190 million Debtor-in-Possession financing facility to support its operations. In order to maximize the value of the Company’s assets, the agreement between Furniture Brands and KPS allowed for additional qualified prospective bidders to enter an auction process, in accordance with procedures established by the Court. The Court set November 20, 2013 as the deadline for submitting bids and November 21, 2013 as the date of the auction.
Miller Buckfire and Company, LLC is acting as investment banker for the Company; Alvarez and Marsal North America, LLC is acting as restructuring advisor; and Paul Hastings LLP is the Company’s legal counsel. Proskauer Rose LLP is acting as legal counsel to KPS with respect to the transaction.