Simmons Chapter 11
Simmons Chapter 11
THL Partners’ Simmons Files Chapter 11 Bankruptcy
Simmons Bedding Co. has filed for chapter 11 today, beginning plans to restructure in Delaware Bankruptcy Court. The Atlanta-based company is the second-largest mattress manufacturer and has been owned by Thomas H. Lee Partners since 2003. A proposed deal, awaiting approval from the bankruptcy court, would cut Simmons’ debt from $1 billion to $450 million.
If the bankruptcy filing is approved, then the process should take about 60 days, according to Michael Henson, spokesman for Simmons through an outside firm.
“All that’s left is confirmation of the court,” he said. “If the court approves the restructuring plan, the company should be able to close the transaction shortly hereafter.”The plan includes a $760 million deal in which private equity firm Ares Management and Teachers’ Private Capital, the private investment arm of the Ontario Teachers’ Pension Plan, would contribute equity. Teachers’ also owns National Bedding Co., the largest bedding maker and part of the Serta brand.Boston-based private equity firm Thomas H. Lee has owned Simmons since 2003 and has been struggling under restructuring charges. The deal would allow Simmons to slash its debt to $450 million from $1 billion. Source
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Tags: Simmons bankruptcy filing, Simmons Bankruptcy, Thomas H Lee Partners Simmons, THL Partners, Simmons Chapter 11 Bankruptcy, Simmons Mattress, Simmons Restructuring, debt
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