Restructuring agreement in place as Lycra goes into Chapter 11
The Lycra Company has won bankruptcy protection under Chapter 11 of the US bankruptcy code at a court hearing in Texas on March 17. The fibre developer said it been able to put in place a restructuring support agreement with “the overwhelming majority” of its creditors.
It said filing for Chapter 11 would enable it to shed around $1.2 billion of debt and emerge from bankruptcy protection within 45 days.
Lycra said the restructuring support agreement was the result of several months of productive discussions with its key creditors.
Chief executive, Gary Smith, said: “Today marks a significant milestone. We are taking decisive action to reduce our debt and strengthen our financial foundation. By taking this step, we will continue serving our customers, supporting our partners, and providing the high-quality products on which they rely.”
