Haynes Boone advised The LYCRA Company on the confirmation of its Chapter 11 plan. The court-approved restructuring will eliminate approximately $1.2 billion in debt from the company’s balance sheet and strengthen the global spandex and specialty fiber manufacturer’s financial foundation for future growth. Haynes Boone served as co-counsel alongside Linklaters in the matter.
“This restructuring didn’t just stabilize The LYCRA Company; it reset the business for a stronger future and positioned it to stretch confidently into its next chapter,” Arsalan Muhammad, restructuring partner of Haynes Boone, said. “Backed by broad stakeholder support, the company moved through Chapter 11 quickly, protected day-to-day operations and emerged with a healthier balance sheet and greater financial flexibility.”
The restructuring was supported by key lender and noteholder groups and culminated in a consensual Chapter 11 plan that received overwhelming creditor approval. The transaction also secured new funding commitments to support the reorganized company following emergence from Chapter 11 bankruptcy.
The Haynes Boone restructuring team was led by Muhammad as well as partners Charles A. Beckham Jr. and Kenric Kattner, with support from counsel Kourtney Lyda and David Staab, and associates Imaan Patel, Lauren Sisson and Adam Schmit. Partner Tiffany Cooke handled the litigation aspects of the matter.
