Tupperware
September 19, 2024
Tupperware's key lenders opposed the company's proposed bankruptcy auction at its first court hearing, cutting off its access to about 7.4 million dollars in bank accounts and moving to dismiss the Chapter 11 case or convert it to a Chapter 7 liquidation.
The lender group, Alden Global Capital, Stonehill Institutional Partners and a Bank of America trading desk, bought Tupperware debt with a face value of 450 million dollars in July. The lenders argued that the company had spent 67 million dollars on restructuring and marketing advisers since January 2023, and that its highest bid was only about 20 percent of its 818 million dollars in debt. They want to foreclose on the assets instead.
Tupperware's attorneys said the company should be allowed to run an open, court-supervised sale and noted that the lenders paid only 15 million to 30 million dollars for their controlling debt stake. The company planned to ask U.S. Bankruptcy Judge Brendan Shannon to restore its cash access at a hearing the following week.