True Religion Apparel’s Second Amended Joint Chapter 11 Plan of Reorganization became effective, and the Company emerged from Chapter 11 protection.
C.E.O. John Ermatinger comments, “With substantial debt burden removed, we are eager to turn our full attention to implementing our forward-thinking strategy, including improving our retail operations, new partnerships and growing the brand’s digital presence. With the consummation of this restructure, we are very excited and poised for the future.”
The Plan allows the Company to deleverage its balance sheet, reducing term loans from $471 million to $113.5 million upon emergence and extending debt maturities to 2022. Citizens Bank, which provided $60 million in D.I.P. financing, is also providing the exit ABL of $60 million, ensuring that the Company continues to have ample additional liquidity, in addition to its cash flow from operations and substantially reduced debt service obligation, to execute its growth plan.
This privately-held specialty retailer filed for Chapter 11 protection on July 5, 2017, listing $243 million in pre-petition assets.