Market Overview

Furniture Brands Announces Court Approval for Enhanced "Stalking Horse" Bid for Company's Assets

Share:

Furniture Brands International (OTC: FBNI) today announced that it has entered into an asset purchase agreement with KPS Capital Partners L.P. ("KPS") to acquire substantially all of the Company's assets for $280 million, including the Company's Lane business.

In addition, Furniture Brands has filed a motion seeking authorization from the U.S.…Furniture Brands International (NASDAQ: FBNI) today announced that it has entered into an asset purchase agreement with KPS Capital Partners L.P. ("KPS") to acquire substantially all of the Company's assets for $280 million, including the Company's Lane business.

In addition, Furniture Brands has filed a motion seeking authorization from the U.S. Bankruptcy Court for the District of Delaware the Honorable Judge Christopher S. Sontchi presiding, to conduct an auction process for the Company. Under Section 363 of the U.S. Bankruptcy Code, KPS would serve as the "stalking horse" bidder in the proposed auction, establishing a minimum value of the Company's assets.

The Court entered an interim order under which KPS will replace Oaktree Capital Management L.P. as the DIP lender to ensure its operations will continue uninterrupted and to set a final hearing for October 11, 2013. KPS has committed to fund up to approximately $190 million as the DIP lender.

In order to maximize the asset price of the Company's brands, the acquisition

See full press release

Posted-In: News

 

Related Articles (FBN)

View Comments and Join the Discussion!
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

The Case Against: Sprint

D.A. Davidson & Co. Reiterates Buy on Herbalife Following Pershing Square Investor Letter