The Firm recently represented Deutsche Bank Trust Company Americas and the other pre-petition lenders under the Simmons Company senior secured credit facility in the Chapter 11 restructuring of Simmons Company's business and existing capital structure. Pursuant to a prepackaged plan of reorganization crafted prior to the company's filing for chapter 11 relief, Deutsche Bank Trust Company Americas and the secured lending syndicate received a par recovery on the outstanding debt obligations as well as payments of current interest. As part of its Chapter 11 restructuring efforts, Simmons Company was able to reduce its total debt obligations from approximately $1 billion to $450 million. During the course of the Chapter 11 proceedings, the Firm also represented Deutsche Bank Trust Company Americas in connection with providing the Debtors with a $35 million debtor-in-possession credit facility to be used for general corporate purposes and as a source of working capital.
Under the terms of the plan of reorganization, Simmons Company, the second-largest mattress producer in the U.S., and its affiliates were acquired by Ares Management LLC and Ontario Teachers' Pension Plan who already hold a controlling interest in another industry leading U.S. mattress producer, Serta.
The U.S. Bankruptcy Court for the District of Delaware confirmed the plan of reorganization on January 5, 2010 and Simmons Company consummated the acquisition and emerged from its pre-packaged Chapter 11 bankruptcy proceedings on January 20, 2010.
The Simpson Thacher team representing Deutsche Bank Trust Company Americas included: Sandy Qusba, Morris Massel and Jason Friedman (Bankruptcy & Restructuring), Bill Sheehan, Jason Hwang, Mark Maher and Andre Gray (Credit), Susan Kaufman (Executive Compensation and Employee Benefits), Katherine Sholly (Intellectual Property), Michael Naughton (Litigation) and Andrew Laird (Paralegal).