2023-08-04 06:08:58 ET
Tupperware Brands ( NYSE: TUP ) surged 50.9% before the bell on Friday after it reached a debt restructuring deal with its lenders, four months after the cash-strapped company flagged substantial doubt about its ability to continue as a going concern.
The deal includes reduction/reallocation of ~$150M of cash interest and fees; extension of the maturity of ~$348M of principal and reallocated interest and fees to FY27 (with payment-in-kind interest); lower amortization payments required to be paid through FY25 by ~$55M; and immediate access to ~$21M revolving borrowing capacity.
"This agreement provides us with the financial flexibility to continue executing on our near-term turnaround efforts ," said CFO Mariela Matute.
Tupperware ( TUP ) also delayed filing its Q1 earnings report on account of restatement of FY22 financial statements due to misstatements and internal control weaknesses.
The company has been struggling to stay afloat, weighed down by a $705M debt burden and significant sales decline after the end of the pandemic, which saw strong demand as people stayed home and cooked.
On the other hand, shares of Tupperware ( TUP ) have piqued the interest of retail investors of late, seeing a fourfold surge in their value over the last month.
The latest meme stock's short interest has gone up to 25%, which SA analyst A. Vandendael said could indicate a potential decline in momentum . "While there's a chance of significant short-term gains, there's also an equally likely possibility of substantial losses."
More on Tupperware's woes
- Tupperware slides 10% on bearish prelim Q1 update
- Tupperware Brands: A 'Final' Analysis And Autopsy
- Tupperware Brands: Risky Play Ahead Of Q1 2023 Earnings
For further details see:
Tupperware stock surges 51% before the bell on debt restructuring deal