Lycra Files for U.S. Reorganization to Tackle $1.2 Billion Debt
Creditors backed a plan providing $75 million in fresh funding, positioning the company to exit court protection in roughly 45 days.
Overview
- The Houston filing seeks relief from about $1.2 billion in liabilities, according to court records.
- Creditors agreed to provide $75 million in new financing and to eliminate most of the company’s earlier $1.53 billion debt load.
- The company reports near-unanimous creditor support and expects to complete the restructuring in about 45 days.
- Lycra says manufacturing, customers, suppliers and its roughly 2,000 employees will not be affected during the process.
- Performance weakened after a 2019 sale to China’s Ruyi Textile and a 2022 creditor takeover, with pressures from softer demand, cheaper generic spandex, volatile U.S. tariffs and legal disputes with former owners.