Furniture Brands International announced that the First Day motions filed on September 9, 2013 relating to the company's voluntary Chapter 11 restructuring process were approved yesterday by the U.S. Bankruptcy Court for the District of Delaware, the Honorable Judge Christopher S. Sontchi presiding.
Among other considerations, the approved First Day Motions allow Furniture Brands to access the $140 million debtor-in-possession including immediate access of $25 million of new liquidity provided by Oaktree Capital Management L.P. allowing Furniture Brands to operate business uninterrupted and continue to meet its post-petition financial obligations, including the payment of employee wages and benefits, timely payment of supplier invoices, continued servicing of customer orders and shipments, and other obligations.
An October 2, 2013 hearing is scheduled for final approval of certain other motions.
"As a result of this approval, Furniture Brands will be able to continue its day-to-day operations without interruption and can begin to implement the restructuring initiatives necessary under the Chapter 11 process," said Ralph Scozzafava, chairman of the board and CEO of Furniture Brands. "We are highly confident that as a result of these actions we will emerge as an even stronger company."
Miller Buckfire and Company 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.
Furniture Brands and certain of its affiliates commenced cases to reorganize under chapter 11 of the U.S. Bankruptcy Code on September 9, 2013. The chapter 11 cases are being jointly administered under case number 13-12329.
Furniture Brands International is a world leader in designing, manufacturing, sourcing and retailing home furnishings. Furniture Brands markets products through a wide range of channels, including company owned Thomasville retail stores and through interior designers, multi-line/independent retailers and mass merchant stores. Furniture Brands serves its customers through some of the best known and most respected brands in the furniture industry, including Thomasville, Broyhill, Lane, Drexel Heritage, Henredon, Pearson, Hickory Chair, Lane Venture, Maitland-Smith and LaBarge.