True Religion Brand Jeans emerged from Chapter 11 bankruptcy. Citizens Bank, which previously provided the troubled jeans-maker/retailer with $60 million DIP financing, provided a $60 million ABL facility to be used for working capital in time for the holiday season.

True Religion’s re-organization plan allows the California-based denim company to greatly de-leverage its balance sheet, reducing its term loans from $471 million to $113.5 million upon emergence and extending its debt maturities to 2022. Debt service each year will be substantially reduced, clearing the way for continued investment and company growth.

“We would like to thank our consumers, our employees, vendors and suppliers for their unwavering support and continued dedication to the True Religion brand,” said John Ermatinger, CEO. “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.”

True Religion’s emergence from bankruptcy will allow it to compete effectively with a sustainable debt structure, adequate operating liquidity and structural improvements from financial and operational restructuring. The company continues to make progress against its strategic plan, with adjusted EBITDA through September at $13.6 million, or more than 46% compared to last year.