old

FRENCH finance group Perceva is to invest in Cauval Industries, the pan-European bedding group that had been in an insolvency process since the beginning of March.


The judge at the Meaux Commercial Court east of Paris chose the turnaround firm’s proposal ahead of others that had included Portuguese furniture company Aquinos, beds and furniture conglomerate Steinhoff, and another finance company called Verdoso.


Perceva buys into troubled companies that typically, it says, have either experienced the loss of a major market, have an over-leveraged balance sheet, or are undergoing a strategic repositioning.


It plans to invest €70m into Cauval, which was placed into the French insolvency process called redressement judiciaire earlier this year.


The process gives companies six months to complete a financial restructure, which typically results in either a refinancing, sale or new investment into the business.


Cauval’s assets include a number of international bed manufacturing and component businesses in countries including Italy, Germany, Poland and the UK, with Sleepeezee brand-owner Simmons Bedding Group among its interests.


Only the French parts of the business have been involved in the current part of the legal process.



TO READ THE FULL STORY: