The LYCRA Company, a global leader in developing fiber and technology solutions for the apparel and personal care industries, has entered into a restructuring support agreement (“RSA”) with the overwhelming majority of its creditors to eliminate approximately $1.2 billion of long-term debt and establish a sustainable capital structure that will recapitalize the Company and position it for long-term financial stability and growth.

The RSA has overwhelming support from holders of the company’s senior secured term loan, 16.% Senior Secured Notes, and 7.5% Senior Secured Notes, who have agreed to vote in favor of a prepackaged plan of reorganization (the “Prepackaged Plan”). To implement the prepackaged plan, the company and certain of its affiliates, have filed a voluntary prepackaged Chapter 11 case in the U.S. Bankruptcy Court for the Southern District of Texas.

The prepackaged plan reflects a consensual agreement reached over the course of several months of productive discussions with the company’s key financial creditors. Given the near unanimous support of its stakeholders, the Company expects to complete its financial restructuring expeditiously and emerge from the Chapter 11 process within 45 days.

“The Lycra company’s products have long been a symbol of quality, delivering benefits like lasting comfort, fit, and performance across a wide variety of apparel and personal care applications,” said Gary Smith, Chief Executive Officer of The LYCRA Company. “Today marks a significant milestone for The LYCRA Company as we are taking decisive action to meaningfully 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. I want to thank our team members for their ongoing dedication and our loyal customers and partners for their continued support throughout the process.”

The company is seeking customary “first day” relief that will enable it to operate in the ordinary course of business throughout the restructuring process. As part of these first day motions, the Company will seek approval to continue to pay all valid amounts owed to vendors and suppliers in full in the ordinary course of business. To support these ordinary course operations, the Company has obtained commitments for $75 million in debtor-in-possession financing (“DIP Financing”) and more than $75 million in exit financing, which is poised to refinance the DIP Financing, providing the Company with capital upon completion of the Chapter 11 process.