Simmons Updates on Interest Payment
January 20, 2009
Simmons Bedding Company, Atlanta, announced Thursday that it did not make a scheduled interest payment of $7.9 million due Jan. 15 on its $200 million, 7.875 percent senior subordinated note.
In a statement, Simmons President and COO Stephen Fendrich said the company is making progress toward reducing the leverage on its balance sheet and said the situation "will not affect our industry leadership or the unparalleled service, innovation and products for which we are known."
Thursday's announcement stated that the company has a 30-day grace period to make the interest payment or the holders of the notes could declare that the full amount of the note is payable immediately.
On Nov. 12, 2008, Simmons Bedding entered into a forbearance agreement with its senior bank lenders and then, on Dec. 9, 2008, announced that it had reached an agreement to extend its forbearance period to March 31, 2009.
On Thursday, Fendrich said, "The forbearance period extension which we entered into in early December is designed to provide us with sufficient time to reduce the leverage on our balance sheet by pursuing an organized financial restructuring" and added that the agreements are being designed to maximize value and protect the company's relationships with customers and suppliers.
In a statement, Simmons President and COO Stephen Fendrich said the company is making progress toward reducing the leverage on its balance sheet and said the situation "will not affect our industry leadership or the unparalleled service, innovation and products for which we are known."
Thursday's announcement stated that the company has a 30-day grace period to make the interest payment or the holders of the notes could declare that the full amount of the note is payable immediately.
On Nov. 12, 2008, Simmons Bedding entered into a forbearance agreement with its senior bank lenders and then, on Dec. 9, 2008, announced that it had reached an agreement to extend its forbearance period to March 31, 2009.
On Thursday, Fendrich said, "The forbearance period extension which we entered into in early December is designed to provide us with sufficient time to reduce the leverage on our balance sheet by pursuing an organized financial restructuring" and added that the agreements are being designed to maximize value and protect the company's relationships with customers and suppliers.
Companies Mentioned:
 |
