Headline: Tupperware Agrees to $86.5 Million Acquisition Led by Lenders

In a significant development, Tupperware Brands has agreed to an $86.5 million buyout by a consortium of its lenders. This deal includes $23.5 million in cash and over $63 million in debt forgiveness. Announced during a bankruptcy court hearing in Wilmington, Delaware, the agreement halted the company's previous plan to auction its assets on the open market.

The renowned food storage and kitchen products company, based in Orlando, Florida, filed for bankruptcy protection last month, citing a substantial debt load of $818 million. The initial plan was to find a new owner within 30 days.

However, this process faced resistance from a group of Tupperware's lenders, who expressed a preference for acquiring the company’s assets themselves rather than seeing them sold on the open market. The lenders objected to the proposed auction's terms, arguing that it would unfairly restrict their ability to use their debt as currency in the bidding process.

The newly reached agreement represents a compromise, allowing the lenders to apply debt cancellation to the purchase price while also requiring them to commit cash to facilitate the payment of Tupperware’s other obligations.

This acquisition will transfer ownership of Tupperware's brand and operations in various key markets to the lenders, which include Alden Global Capital, Stonehill Institutional Partners, and a trading desk of Bank of America.

The agreement comes after a challenging period for Tupperware. The company gained fame with "Tupperware parties" in the 1950s, symbolizing empowerment and independence for post-war women. Recently, the company experienced a decline in sales due to its over-reliance on independent sales representatives and its failure to capitalize on online and retail store opportunities.

U.S. Bankruptcy Judge Brendan Shannon, overseeing the case, stated that a separate court hearing would be swiftly arranged to finalize the sale. Shannon acknowledged the tough conditions Tupperware is facing, suggesting that the deal with the lenders might be the best outcome under the current circumstances.