Steinhoff Updates About Financial Restructuring Of Unit Mattress Firm

(RTTNews) - Retailer Steinhoff International Holdings N.V. Issued Tuesday an update regarding the financial restructuring of its unit Mattress Firm, Inc. (MFRM)

On October 5, Steinhoff announced that Mattress Firm 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 Filing, Mattress Firm also secured certain financing arrangements that 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.

The Company further referred to its announcement of October 25, noting that, in relation to the Mattress Firm Filing, the High Court of Justice in England and Wales, on October 24, granted Stripes US Holding, Inc. or SUSHI, a direct subsidiary of Steinhoff Europe AG, 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.

SUSHI currently has a revolving credit facility under which it owes certain lenders approximately $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 and the Company, with the SUSHI RCF being cancelled.

The High Court of Justice in England and Wales has on November issued an order sanctioning the SUSHI Scheme. Upon lodging of the Scheme Sanction Order with the Registrar of Companies, the SUSHI Scheme shall take effect and be binding on SUSHI, the Scheme Creditors and each Undertaking Party and its successors and assigns.

The Scheme Effective Date is expected to occur on or around November 19.

The company said the Group restructuring otherwise continues in accordance with the terms of the lock-up agreement entered into by the Company in July. The Company will continue to provide updates as appropriate.