Tupperware's $86.5 Million Rescue Deal with Lenders
Tupperware Brands will sell its business to lenders for $23.5 million in cash and $63 million in debt relief, avoiding an open-market auction. The company, burdened with $818 million in debt, is focusing on key markets including the U.S., Canada, and India, while winding down operations elsewhere.
In a strategic bailout move to evade an open-market auction, Tupperware Brands announced the sale of its business assets to a consortium of lenders for $23.5 million in cash and over $63 million in debt relief. The decision was made public during a bankruptcy court hearing in Wilmington, Delaware, with U.S. Bankruptcy Judge Brendan Shannon indicating a prompt hearing to approve the sale.
Having filed for bankruptcy the previous month with substantial debts of $818 million, the Orlando-based company had a 30-day deadline to secure a buyer. However, opposing factions within its lender group sought direct control of the company's assets instead of conventional sale proceedings.
The finalized sale agreement favors the lenders, facilitating the acquisition of Tupperware's brand name and operations across pivotal markets. This agreement allows flexibility in settling the purchase price through debt cancellation and cash payments, thus preserving the interests of Tupperware's other creditors. Key lenders involved include Alden Global Capital, Stonehill Institutional Partners, and Bank of America.
(With inputs from agencies.)
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