Consumer goods company Thrasio entered into a restructuring support agreement with approximately 81% of its revolving credit facility lenders and approximately 88% of its term loan lenders that will eliminate approximately $495 million of the company’s existing debt, defer all interest payments in the first year post-emergence and infuse new capital into the company. To implement the terms of the RSA, Thrasio initiated a pre-arranged court-supervised Chapter 11 bankruptcy process in the U.S. Bankruptcy Court for the District of New Jersey.

Thrasio expects to use this process to strengthen its financial position and deleverage its balance sheet. The company will continue to operate its business normally and without interruption throughout the Chapter 11 process. Thrasio aims to complete the process on an expedited basis.

Thrasio received commitments from certain of its lenders for up to $90 million in new financing. This infusion of new capital is expected to provide sufficient liquidity to support the company throughout the restructuring process and beyond. In particular, the financing will enable the continued operation of Thrasio’s brands, support ongoing business operations and provide the company with access to new capital upon emergence from Chapter 11 bankruptcy to support go-forward business operations.

“Over the past year, we have made significant progress transforming the business and advancing our objective to introduce hundreds of brands to millions of customers,” Greg Greeley, CEO of Thrasio, said. “We are taking steps to build on this progress by strengthening our financial position and working with our lenders to support our future success. Thrasio is one of the largest third-party sellers on the Amazon marketplace, and with a strengthened balance sheet and new capital, we will be better equipped to support our brands, scale our infrastructure and enable future opportunities.

“We appreciate the constructive engagement we’ve had with our lenders to date, and we look forward to continuing to work together towards the best path for the business and all our stakeholders. We are also grateful to our customers and partners for their support and to our employees for their continued hard work and dedication. As we move forward, our team remains focused on supporting our brands by delivering exciting, innovative and beloved products.”

Thrasio filed customary motions with the court seeking authorization to support its operations, including the payment of employee wages, salaries and benefits without interruption. The company expects to receive approval of these motions in the coming days. Thrasio intends to pay vendors and suppliers in full for goods and services provided during the Chapter 11 process.

Kirkland & Ellis is serving as legal counsel, Centerview Partners is serving as financial advisor and AlixPartners is serving as restructuring advisor to Thrasio.