US Court Allows Tupperware To Transfer Assets To Stonehill Capital And Alden Global
US Court Allows Tupperware To Transfer Assets To Stonehill Capital And Alden Global
This will enable the company to exit bankruptcy with most of its operations intact
The US District Court for the District of Delaware has allowed Tupperware Brands Corporation to transfer its brand name and key assets to investment firms Stonehill Capital Management Partners and Alden Global Capital.
Unable to find a buyer to pay off its $818 million debt, the company plans a digital-first, asset-light business model post-bankruptcy.
While stating that it was the best available option for Tupperware, Judge Brendan Shannon approved the sale of the food storage and kitchen products company, which tried to find a buyer for months before its bankruptcy filing.
The company’s attorney Spencer Winters explained that no one was willing to pay off the company's $818 million in debt.
Tupperware stated that investment firms Stonehill Capital and Alden Global acquired the company’s debt at a steep discount and were offering $23.5 million in cash and over $63 million in debt relief.
The sale includes Tupperware's brand name and assets in core markets including the United States, Canada, Mexico, Brazil, China, Korea, India and Malaysia.
In a statement, Laurie Ann Goldman, the CEO of Tupperware said that the company would end its operations in certain other markets and shift to a digital-first, technology-led and asset-light business model.
In October, the Orlando, Florida-based company filed for Chapter 11 protection, seeking to auction its assets on the open market. However, its lenders opposed the sale plans, preferring to claim the assets, after which, the deal was signed.
