Recasting, add information about Serta)
* Simmons and Serta jointly defeated Sealy * Simmons to file for bankruptcy by Caroline Humer New York on the 25 th (Reuters)-
Mattress Makers Simmons and Serta are planning to replace rival Sealy with a $0. 76 billion deal to become the world\'s largest mattress company, including Simmons filing for bankruptcy.
Simmons said on Friday that it had developed a restructuring plan to sell to private companies.
Ares Management LLC, an equity firm with rival Serta, and a division of the Ontario Teacher pension program.
Meanwhile, Shuda and Simmons-
Will continue to operate as an independent company and brand
It will have a larger market share than its current world leader, Sealy Corp ZZ.
According to market research firm IBISWorld Inc.
Simmons owned by private equity firm Thomas H.
Li, since the end of 2008, has squeezed its profits due to a heavy debt burden and a decline in consumer demand, leading it to miss the financial targets needed for loans related to the 2003 acquisition. The Atlanta-
The company says there are more than two pre-packaged restructuring plans
It requires the support of Bill holders and lenders and reduces debt from $0. 45 billion to about $1 billion.
The deal includes about $0. 31 billion in new shares of Serta owners.
A Simmons spokesman said the company will soon put the plan to a vote and is expected to file for bankruptcy within 30 to 60 days.
He said bankruptcy could take another two months.
Under the plan, senior bank lenders, trade suppliers, suppliers and employees will be repaid in full.
Senior Sub-Notes holders will receive a principal due of 95 cents or $0. 19 billion, and holders of holding company discount Notes will receive a $15 million expenditure of $0. 269 billion, a company spokesman said.
As part of the financial restructuring plan, investors who took out $0. 3 billion in loans in 2007 will not be able to repay them.
A loan, like the discounted note mentioned earlier, pays dividends to its owner.
THLee bought a 139 majority.
In 2003, Fenway Partners set up a one-year company in a $1 deal. 1 billion.
THLee is the sixth owner in 23 years.
The mattress industry has always been attractive to private equity buyers because of the stable cash flow of businesses and a sharp drop in consumer spending.
Sealy is owned by the acquisition company Kohlberg Kravis Roberts & Co [KKR. UL].
It also restructured its debt earlier this year.
The mattress industry has come out of the downturn.
Foamex International Inc. , manufacturer of polyurethane foam for mattresses . ;
Integrated bedding company that makes the brand of spring air mattress;
Mattress and mattress discount stores have all filed for bankruptcy.
As of June 27, Simmons had assets of $0. 896 billion and $1.
Liabilities accounted for 26 billion per cent, according to regulatory documents.
The company says it has $67 million in cash. (
Thomas Hales of Wilmington, Delaware and Santosh Nadgir, Bangalore, added;
Edited by Vinu Pilakkott of Phil Berlowitz;
And Carol Bishop)