Overview
- Lycra filed its case in the U.S. Bankruptcy Court for the Southern District of Texas and secured $75 million in debtor-in-possession financing plus commitments for more than $75 million in exit financing.
- The company is seeking first-day court approval to continue normal operations and to pay valid amounts owed to suppliers and vendors in full.
- Holders of the senior secured term loan and the 16.000% and 7.500% senior secured notes have agreed to support the reorganization plan.
- The company expects to emerge in about 45 days without disrupting its eight manufacturing plants, three research labs and 11 offices that employ roughly 2,000 people worldwide.
- Under the proposed plan, senior lenders would exchange debt for equity, wiping out current equity holders, and certain Lycra entities are not included in the filing.