The Lycra Company, the Wilmington, Del.-based fiber and technology solutions provider, said Tuesday that it completed its financial restructuring and has emerged from Chapter 11. The company filed for bankruptcy in March.
The company said that through a “prepackaged reorganization” process, it has now established a far more durable capital structure by eliminating more than $1.2 billion in long-term debt and securing more than $75 million in new equity funding.
The Lycra Company said in a statement that throughout the restructuring, it maintained normal and uninterrupted global operations while continuing to deliver on all commitments to its employees, customers and vendors. Control of the reorganized business is transitioning to its new equity owners, which is a group of global investment funds that have been long-term investors in the company’s securities.
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Alongside the restructuring, The Lycra Company said it has appointed a new board of directors, naming seasoned energy and chemicals executive Bruce Rubin as executive chairman. Dean Williams, who has been with the company since its inception and has extensive financial leadership experience, will serve as interim chief executive officer, succeeding former CEO Gary Smith, who left the company.
With its newly strengthened balance sheet and enhanced financial flexibility, management said it intends to aggressively pursue its long-term growth strategy. Moving forward, the company plans to focus heavily on operational excellence and reinvesting in its global operations, customer partnerships and signature brand innovations.
In March, the Lycra Company entered a Chapter 11 restructuring support agreement with its creditors to erase about $1.2 billion in long-term debt while establishing a more sustainable capital structure.
The voluntary prepackaged Chapter 11 case was filed in the United States Bankruptcy Court for the Southern District of Texas, with the company’s lenders agreeing to provide $75 million in debtor-in-process financing.
