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Hollander Sleep Products has filed for bankruptcy, citing a severe cash squeeze due in part to substantial price increases for materials.
The Boca Raton, Fla.-based supplier of pillows, mattress pads and other bedding products said it has only $523,000 in cash on hand but secured lenders have agreed to provide it with $118 million to keep it operating during the bankruptcy process.
A Chapter 11 reorganization plan negotiated with lenders would convert about $166.5 million of Hollander’s $233 million debt burden to equity but the...