Furniture Brands International Inc. is the maker of the Broyhill, Thomasville and Lane home furnishing lines. The company had won court approval for bankruptcy financing to help fund its operations. The approved loan amounted to as much as USD115 million. Furniture Brands had also been pushing the sale of most of its assets to Oaktree Capital Management LP in a deal valued around USD166 million.
The approved loan for the bankruptcy financing was granted at a hearing today in Wilmington, Delaware. US Bankruptcy Judge Christopher Sontchi gave the company interim approval for the loan provided by Oaktree. Furniture Brands would seek approval for the full financing package valued USD140 million on October 2.
The acquisition offers and loan deals offered by Oaktree were modified during a break in today's hearing. This was after KPS Capital Partners made an alternative proposal.
Luc A. Despins, a lawyer for the company, told the judge, "It was a productive recess. I think the estate is much better off than it started this morning."
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