Simmons SBC to acquire assets of Western Nonwovens
15 Jul '08
3 min read
Western Nonwovens Inc and certain of its affiliates ('WNI' or the 'Company') announced that it has agreed to sell a substantial portion of its assets to SBC Manufacturing Co. LLC (“SBC”). The sale includes WNI's plants in Orlando, FL, Sauget, IL, and an option to purchase the Carson, CA plant. At the same time, the Company filed a voluntary petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The filings were made in the U.S. Bankruptcy Court for the District of Delaware.
The Company also announced that it has reached an agreement with its lender to provide debtor-in-possession financing, subject to Bankruptcy Court approval, to fund the Company's business operations while it completes the sale process. This financing will provide the Company the necessary funds to continue operations in the normal course of business; keeping all of the Company's currently operating plants open on normal schedules, and fulfilling customer orders.
The purchase agreement is subject to the approval of the Bankruptcy Court. Definitive documents will be filed with the court, along with bidding procedures noting that qualified bidders will be provided an opportunity to make higher and better offers for the purchase. It is anticipated that the sale will be completed within 45 days. Bid procedures for sale of assets not included in the sale to SBC will also be filed with the court.
“We are pleased to have entered into an agreement for the sale of several of WNI's plants,” said Jonathan Nash, Chief Executive Officer of WNI. “We have carefully reviewed our options and believe that a sale will provide the best long-term prospects for the Company's customers, suppliers and employees.”
The transition of control should be concluded by the end of August 2008.
Western Nonwovens Inc is a leading manufacturer of nonwoven materials headquartered in Carson, California, with operations throughout the United States. WNI services a variety of industries, including mattress, automotive, retail apparel, filtration and furniture manufacturers. WNI's focus is on applying innovative solutions in adding value for its customers.
SBC Manufacturing Co LLC is a subsidiary of Simmons Bedding Company. Simmons Bedding Company is one of the world's largest mattress manufacturers, manufacturing and marketing a broad range of products, including Beautyrest, Beautyrest Black, ComforPedic by Simmons, Natural Care, Beautyrest Beginnings and Deep Sleep. Simmons Bedding Company operates 21 conventional bedding manufacturing facilities and two juvenile bedding manufacturing facilities across the United States, Canada and Puerto Rico.
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