Simmons Bedding skips $7.9 million interest payment on 7 7/8% notes

By Caroline Salls

Pittsburgh, Jan. 15 - Simmons Co. subsidiary Simmons Bedding Co. did not make the $7.9 million scheduled interest payment due Thursday on its $200 million of 7 7/8% senior subordinated notes, according to a news release.

The company has 30 days to make the payment before non-payment triggers an event of default.

According to the release, Simmons Bedding obtained an extension to March 31 of a forbearance agreement reached in November with its senior bank lenders.

"The forbearance period extension which we entered into in early December is designed to provide us with sufficient time to reduce the leverage on our balance sheet by pursuing an organized financial restructuring," Simmons Bedding president and chief operating officer Stephen G. Fendrich said in the release.

"Simmons continues to make progress working with its various financial stakeholders to design and implement a restructuring in a manner that maximizes value and preserves and protects its relationships with customers and suppliers."

Simmons Co. had $49.7 million of cash on hand as of Jan. 14, according to the release. That cash is available to pay operating costs and expenses.

Simmons is an Atlanta-based manufacturer of bedding products.

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