By Dennis Seid
Furniture Brands International will be in bankruptcy court in Delaware on Wednesday, as a judge will consider several motions.
Among them: Oaktree Capital Management‘s larger bid for the company and its assets – including Lane.
After filing for Chapter 11 bankruptcy protection on Sept. 9, Furniture Brands had said it favored a bid by Oaktree for $166 million, including $140 million in financing, plus the assumption of other liabilities. But that bid did NOT include Lane Furniture.
But after KPS Capital Partners offered a higher bid, which included Lane, and a bidding war of sorts has ensued.
In court documents, Furniture Brands says it favors Oaktree’s latest bid of $260 million. However, the unsecured creditors’ committee has balked and said it favors KPS’ even higher bid of $280 million.
And in both new bids, Lane Furniture is included in the bids, a hopeful sign for the 1,400 Lane employees in Northeast Mississippi.