Information For Vendors
Dear Valued Sleep Innovations/Advanced Urethane Technologies Vendor,
For many years, Sleep Innovations/Advanced Urethane Technologies has been focused on developing and marketing quality foam products, 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/Advanced Urethane Technologies a top priority.
Today, I want to let you know that after evaluating a range of alternatives, we have made the 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/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. Our intention is to move quickly through the Chapter 11 process and emerge by February 2009.
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. We expect to see an immediate impact on our ability to pay our vendors and improved responsiveness to your company. This will include the timely payment of post-petition invoices which is required by the Court.
The partnership between our two companies is one that we greatly value and our vendors have been a key component of our past success and will be critical as we improve our capabilities and enhance our leadership in the industry. We look forward to strengthening our relationship and appreciate your understanding and support.
We are committed to keeping you informed of our progress and significant developments as we move through the restructuring process. Please feel free to contact us or visit www.sleepinnovationsch11.com should you have any additional questions.