Steinhoff Provides Details Of Mattress Firm Financial Restructuring

(RTTNews) - Steinhoff International Holdings N.V. announced on October 5, 2018 that its subsidiary Mattress Firm, Inc. (MFRM) was taking steps to implement a pre-packaged plan of reorganization through the voluntary filing of cases under Chapter 11 of the US Bankruptcy Code.

In conjunction with the Mattress Firm filing, Mattress Firm also secured certain financing arrangements that will come into effect upon completion of the implementation of the plan of reorganization and Mattress Firm's exit from the Chapter 11 proceedings that are intended to support its business going forward.

On October 24, the High Court of Justice in England and Wales, granted Stripes US Holding, Inc. or SUSHI, a direct subsidiary of Steinhoff Europe or SEAG, permission to convene a scheme meeting for the creditors affected by the English scheme of arrangement proposed by SUSHI for the purpose of considering and, if thought fit, approving the SUSHI Scheme.

According to Steinhoff, SUSHI currently has a revolving credit facility or RCF under which it owes certain lenders about $200 million.

Pursuant to the SUSHI Scheme, it is intended that the SUSHI RCF Lenders will exchange their rights under the SUSHI RCF for substantially similar rights under a new RCF between, among others, SEAG (as borrower) and SAteinhoff(as guarantor), with the SUSHI RCF being cancelled.

The documents published in connection with the SUSHI Scheme are being posted to SUSHI RCF Lenders. The SUSHI Scheme is expected to become effective on or around 16 November 2018, Steinhoff noted.

The Group restructuring otherwise continues in accordance with the terms of the lock-up agreement entered into by Steinhoff on July 11, 2018.