Linklaters acts as lead debtor counsel on The LYCRA Company’s prepackaged restructuring eliminating $1.2 billion of debt

Linklaters is advising The LYCRA Company, a global leader in developing fiber and technology solutions for the apparel and personal care industries, as lead debtor counsel on its prepackaged chapter 11 restructuring. The restructuring will 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 voluntary prepackaged cases were filed 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 LYCRA’s key financial creditors. In addition, a cornerstone of the plan is the implementation of a settlement agreement with Helm Corporation, a key commercial counterparty. Given the near unanimous support of its stakeholders, LYCRA expects to complete its financial restructuring expeditiously and emerge from the chapter 11 process within 45 days.

The Linklaters team was led by Restructuring & Insolvency Partners Michael Torkin in New York and James Warboys and Liam Robinson in London. Additional Restructuring & Insolvency support was provided by New York Partners Daniel Guyder and Christopher Hunker, New York associates Clark Xue, Ramsey Scofield, Matthew Bopp, and Curtis Smith, and London associates Rollo Speak, Ian Tsui, Freddie Beaumont, Ellie Park, and Robyn Wyatt. Banking support was provided by New York Partner Danelle Le Cren, London Partner Paul Kuipers, New York Counsel Andres Loera, New York Associates Alfredo Hwang and Michal Folczyk, and London Associate Kimberly Martin. Capital Markets support was provided by New York Partner Kristina Trauger and London Partner Christianne Williams. Litigation support was provided by New York Partner Muhammad Faridi and Associate Sarah Hardtke. Tax support was provided by New York Partner Gabe Grossman, London Counsel Omer Harel, and New York Associates Reuven Rosen and Erika Jensen. Executive Compensation & Employee Benefits support was provided by New York Partner Andrew Gainesand Associate Maddy Hayes. IP support was provided by New York Counsel Shruti Chopra.