The Lycra Company completed its financial restructuring and has emerged from Chapter 11, eliminating more than $1.2 billion in long-term debt and securing more than $75 million in new equity funding.
The fiber company, based in Wilmington, Delaware, filed for bankruptcy in March.
The Lycra Company said in a statement that 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. Lycra said, “Collectively, they bring deep experience and commitment to the company, its products, and its brands, and are committed to building on the positive momentum of the restructuring process by investing in the company’s future success.”
Gary Smith, the company’s former chief executive officer, has stepped down and separated from the company.
Dean Williams, the company’s chief financial officer, has been appointed interim CEO while a search is conducted for a permanent CEO. Williams has been with the company since its formation over seven years ago and has extensive experience in financial leadership, strategic planning, and operational management.
The company has also appointed a new Board of Directors, with Bruce Rubin, an energy and chemicals executive with over 45 years of leadership experience, serving as executive chairman of the Board. Rubin stated, “With a strong foundation in place, The Lycra company will be well-positioned to enhance operational excellence, accelerate innovation, deepen customer partnerships, and reinvest in our high-quality products. We look forward to growing our distinct and trusted brands into the future. We would like to thank Gary and the departing Board for their steady leadership in guiding the company through this pivotal period. The Board looks forward to working closely with Dean – an exceptional and trusted operational leader – as we position the company for success.”
The rest of The Lycra Company’s executive leadership team remains in place and will continue to partner closely with Dean and other key stakeholders to accelerate the company’s path forward.
“Emergence marks a defining moment for The Lycra Company,” said Williams. “We will now be a financially stronger, more focused organization that is positioned for growth. This milestone would not have been possible without our team members, whose resilience, dedication, and commitment to our customers enabled us to navigate this process without disruption. While we still have work to do to reach our full potential, we have never been better positioned to do so.”
The Lycra Company is advised in this matter by Linklaters LLP and Haynes Boone, LLP as legal counsel, Houlihan Lokey as investment banker, and FTI Consulting as financial and communications advisor.
Image courtesy The Lycra Company
