Atlanta, Georgia -- Simmons Bedding Co. said 5 Jan that its restructuring plan has been approved by the US Bankruptcy Court for Delaware, and that this will allow the acquisition of Simmons Bedding and all of its subsidiaries, as well as its parent Bedding Holdco Inc., by Ares Management llc and Teachers' Private Capital (collectively, "AOT").
Simmons Bedding expects that it will finalise the transaction and emerge from chapter 11 around 20 Jan 2010.
Stephen Fendrich, Simmons Bedding's president and chief operating officer, commented, "Just as our lenders and note holders voted their confidence last fall, this favourable decision by the Court further validates the viability of our plan and opens the door to an exciting future for our company, our employees, and all of our suppliers and our customers."
Simmons announcement said that the reorganised companies will have improved their capital structure by substantially reducing total debt obligations from approximately $1000 million to about $450 million. Under the plan, all trade vendors, suppliers, employees, and senior secured lenders will be paid in full.