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

Furniture Brands International

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

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