Furniture Brands International Inc.(fka FBNIQ)

[money4nuthin]

KPS Capital Partners Agrees To Acquire Furniture Brands International
12:23p ET October 3, 2013 (PR NewsWire) KPS Capital Partners, LP ("KPS") today announced that, through an affiliate, it has entered into an asset purchase agreement with Furniture Brands International, Inc. (OTC: FBNIQ) and certain of its wholly-owned subsidiaries (collectively, "Furniture Brands") under which KPS will acquire substantially all of the assets of Furniture Brands, including the company's Lane business, for $280 million. The agreement was designated by the United States Bankruptcy Court for the District of Delaware as the lead bid in a Court-supervised sale process under Section 363 of the Bankruptcy Code and replaces a competing bid that did not include the Lane business. Furniture Brands filed voluntary petitions under Chapter 11 of the Bankruptcy Code on September 9, 2013.

KPS, through an affiliate, has also agreed to provide Furniture Brands with a $190 million Debtor-in-Possession financing facility (the "DIP facility") to support its operations. The DIP facility, which has received interim court approval, will ensure that Furniture Brands has sufficient liquidity to continue normal operations and continue to meet its financial obligations, including the timely payment of employee wages and benefits, continued servicing of customer orders and shipments, and other obligations. It is expected that the DIP facility will receive final court approval at a hearing scheduled for October 11, 2013.

Raquel Vargas Palmer, a Partner of KPS, said: "We are pleased to reach this agreement to acquire substantially all of the assets of Furniture Brands. We believe there is exceptional value in the Furniture Brands businesses that can be realized through considerable operational improvements and focused investments behind all of the company's brands. The KPS transaction is fundamentally and structurally different than the proposed transaction entered into by the debtor at the time of its Chapter 11 filing as it keeps all of Furniture Brands' businesses together and positions the Company for long-term success in its markets."

Ralph Scozzafava, Chairman of the Board and CEO of Furniture Brands, added: "KPS provides us the financial flexibility and operational expertise to emerge from this process a strong standalone business positioned for future growth. We look forward to working with the KPS team to return our business to leadership positions in our targeted markets for the benefit of our employees, customers, suppliers and business partners."