Information For Customers
Dear Valued Sleep Innovations/Advanced Urethane Technologies Customer,
For the last 11 years, Sleep Innovations has been focused on developing and marketing quality foam bedding, sleep products and accessories for our customers. Since coming on board a few months ago, I have been working with our management team and advisors on initiatives to build a stronger, more responsive and more competitive Company. The challenging economic climate, rising commodity costs and the tight credit markets have made reducing our debt and establishing a solid financial foundation for Sleep Innovations a top priority.
Today, I want to let you know that after evaluating a range of alternatives, we have made the strategic decision to pursue a financial restructuring by filing a voluntary petition under Chapter 11 of the United States Bankruptcy Code. The Company is utilizing Chapter 11 as it provides the necessary tools to significantly reduce our debt and strengthen our balance sheet.
Sleep Innovations and Advanced Urethane Technologies will continue normal operations through our restructuring and we expect no changes to manufacturing or delivery schedules. We are processing orders as usual. With a secure financial foundation, we expect to be able to serve customers better and have the resources to enhance operations including increasing manufacturing efficiency and streamlining new product development.
As part of our restructuring, we are attempting to secure $35 million in debtor-in-possession or DIP financing from our existing lenders. This would provide us with the necessary funds to meet our obligations to employees and vendors for the materials and services needed in order to serve our customers and continue operations without interruption. Our intention is to move quickly through the Chapter 11 process and emerge by February 2009.
All of us appreciate your business and thank you for your loyalty and continued support. We expect to emerge from Chapter 11 with improved capabilities to provide you with outstanding products and services, enabling us to build on our leadership position in the industry for years to come. We look forward to continuing our relationship with you.
We are committed to keeping you informed of our progress and significant developments as we move through the restructuring process. Please feel free to us or visit www.sleepinnovationsch11.com should you have any additional questions.