(Corrects 2d paragraph to show Lane Furniture, not Lane
Ventures, is excluded from the sale.)
Sept 9 Furniture Brands International Inc
filed for Chapter 11 bankruptcy protection on Monday
and said it plans to sell most of its business, which includes
names such as Thomasville, Drexel Heritage and La Barge.
The St. Louis-based company said in a statement it agreed to
sell all of its brands except Lane Furniture to Oaktree Capital
Management, an investment firm that specializes in buying assets
from bankrupt companies.
The sale agreement will be subject to higher bids and a
court-supervised auction. The money from the auction will be
used to repay Furniture Brands creditors.
The company's pink sheet stock was down 33 cents or 57
percent at 24 cents per share in afternoon trading.
Oaktree also committed to providing a $140 million
debtor-in-possession or DIP loan to finance the bankruptcy case.
The company said in documents filed in Delaware's U.S.
Bankruptcy Court that it estimated its assets were worth $546.7
million and its liabilities were worth $550.1 million.
It said its largest creditors were LP Products PTE Ltd, a
trade creditor owed $2.5 million, and the Pension Benefit
Guaranty Corp, a government insurer of defined-benefit pensions.
The case is Furniture Brands International Inc, U.S.
Bankruptcy Court, District of Delaware, 13-12329.
(Reporting by Tom Hals in Wilmington, Delaware; Editing by
James Dalgleish and Leslie Gevirtz)