Tupperware shares soar on agreement with lenders to restructure debt (updated)

Tupperware Brands

03/08/2023 22:28

(Adds details on debt restructuring in paragraph 5, 8 & 9)
       Aug 3 (Reuters) - Tupperware Brands  TUP.N  said on
Thursday it has finalized an agreement with its lenders to
restructure its debt obligations in an effort to turnaround its
business, sending its shares soaring 57% after the bell. 
    The agreement will help the company to reduce or reallocate 
about $150 million of cash interest and fees, and would give it 
immediate access to a revolving borrowing capacity of about $21
million.
    Known for its plastic airtight storage containers and bowls,
Tupperware has seen a sharp drop in demand recently as consumers
limit discretionary purchases amid higher prices and fears of
recession. 
    The company had on April 7 raised doubt about its ability to
continue as going concern after failing to improve its business 
for about three years. The company reported $705.4 million in
total debt for 2022.
    In May, it signed investment bank Moelis & Co to help
explore strategic options and said it has found additional prior
period misstatements in its financial reporting.
    The agreement also paves the way for the extension of the
maturity of about $348 million of principal and reallocated
interest and fees to 2027 with payment-in-kind interest.
    It is also expected to aid a reduction of amortization
payments required to be paid through 2025 by about $55 million.
    Despite the going concerns, the company's shares have 
gained nearly 541% between July 21 and July 31, mirroring the
moves seen in financially challenged companies like Bed Bath &
Beyond and other "meme" stocks known for their popularity with
retail investors.

 (Reporting by Ananya Mariam Rajesh, Granth Vanaik and Deborah
Sophia in Bengaluru; Editing by Arun Koyyur)
 ((AnanyaMariam.Rajesh@thomsonreuters.com ; Twitter: https://twitter.com/AnanyaMariam;))