27 April 2007

Freshfields Bruckhaus Deringer

http://www.freshfields.com/

Schieder Moebel Super Bridge Facility

Schieder Möbel, Europe's largest furniture maker, announced that its creditors have agreed on a Super Priority Bridge Facility to allow the company to continue its business. This enabled the group to withdraw the insolvency applications which had been filed at the regional court in Detmold, Germany.

International law firm Freshfields Bruckhaus Deringer is advising Schieder Möbel on the facility and leading the wider restructuring.

Schieder Möbel employs 11,000 staff across Europe and generated revenue of €882m in the financial year 2005/06. Financial problems arose for the group when financial covenants were breached and the group was left unable to make its interest payments.

The concept for the long-term financing and restructuring of the company is expected to be completed in the course of 2007.

Freshfields finance partner, Richard Tett, the co-lead partner in London, said, 'This was a phenomenally difficult transaction to achieve and is a great result for the group, its lenders and the thousands of employees. It is an unusually large Bridge - nearly two thirds of the existing Senior of €105m. The capital structure was very complex with many layers of debt - senior, second lien and subordinated. There were different economic issues for the different lender groups, but 100% of all their consents were required. The need for unanimity across the debt layers made it difficult to achieve an agreement satisfactory to all the creditors. We are delighted for Schieder Möbel that ultimately the Bridge was successfully agreed.'

Commenting on the Detmold judge's approach, Lars Westpfahl, the co-lead German partner, said, 'This is an extremely interesting and creative development. The first insolvency application was filed on 12 April, a week before the Bridge was agreed. It is very good to see the judge allowing a little time for the Bridge to be put in place. Without this flexibility, the group would have ended up in insolvency. This shows that there can be creative flexibility in the German regime and demonstrates the importance of a constructive judge.'

The Freshfields team is being led by partners Richard Tett (finance, London), Lars Westpfahl (dispute resolution, Hamburg) and Peter Versteegen (corporate, Hamburg), with support from Corrado Angelelli (finance, Milan), Jeroen Thijseen (finance Amsterdam), Friedrich Jergitsch (finance, Vienna), principal associate Carsten Hofmann (finance, Frankfurt), senior associate Catherine Derrick (finance, London) and associates Marie-Christine Gräfin von der Groeben, Riaz Janjuah (both finance, Hamburg), Stephan Schulz (corporate, Hamburg), Elizabeth Murray and Caspar Davey (both finance, London), Christian Fischer (finance, New York), Inke Hülsdunk, Moritz BSuper Priority Bridge FacilitySuper Priority Bridge FacilitySuper Priority Bridge Facilityälz (both finance, Frankfurt), Stefano Guira (finance, Milan), Thijs Flokstra and Merten Schellingerhout (both finance, Amsterdam).

For further information please contact:

Richard Tett, partner
T +44 20 7832 7627
E richard.tett@freshfields.com

Gemma Abbott, PR executive
T +44 20 7427 3440
E gemma.abbott@freshfields.com

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