Tupperware gets credit agreement waiver, names restructuring officer

By Sarah Lizee

Olympia, Wash., May 8 – Tupperware Brands Corp. and some of its subsidiaries amended their credit agreement with Wells Fargo Bank, NA as administrative agent to provide for a waiver of some of the borrowing conditions, according to an 8-K filed Friday with the Securities and Exchange Commission.

The waiver permitted the company to make, on the effective date of the amendment, a single borrowing in the principal amount of $5.3 million. The proceeds of which were used to pay past-due interest owed by the company under the credit agreement.

Defaults have occurred under the credit agreement because the past-due interest, and because of the company’s failure to deliver audited financials for the fiscal year ended 2022 on time.

The amendment also requires the company to comply with additional reporting and other requirements, including appointing and maintaining the appointment of a chief restructuring officer, maintaining the engagement of an investment adviser, cooperating with the administrative agent’s efforts in conducting an enterprise valuation of the company and its subsidiaries, and participating in weekly update conferences with, among others, the administrative agent and the lenders.

On Thursday, the company appointed Brian J. Fox of Alvarez & Marsal North America, LLC as the company’s chief restructuring officer.

Fox is a managing director with Alvarez & Marsal’s North American Commercial Restructuring practice in New York.

The company has engaged Moelis & Co. LLC to run a process to explore strategic alternatives and advise on potential means to improve the company’s liquidity and capital structure and other strategic transactions.

The company currently expects to file with the SEC its annual report on form 10-K for the year ended Dec. 31 within the next 50 days, and its quarterly report on form 10-Q for the quarter ended April 1 within the next 75 days. But Tupperware said there can be no assurance that either of the forms will be filed by those times.

While the company is still completing its first-quarter 2023 financial close process, it expects that its form 10-Q will reflect a material decline in revenues for the quarter ended April 1, as compared to the quarter ended March 26, 2022.

Tupperware believes that its preliminary estimated revenue results for the quarter ended April 1 will be within the range of $280 million to $290 million.

The company said that, since its April 7 8-K filing, it has identified additional prior period misstatements and additional material weaknesses in internal control over financial reporting.

The previous 8-K filing also disclosed the company’s conclusion that there is substantial doubt about its ability to continue as a going concern.

Tupperware Brands is a consumer products company based in Orlando, Fla.

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