J.Jill opts for out of court restructuring transaction

September 16, 2020 - United States Of America

US omni-channel retailer and women’s apparel brand J.Jill recently announced it has obtained the necessary consents from lenders holding 97.8 per cent of its term loans to implement the financial restructuring transaction announced earlier on an out of court basis. The consents are intended to result in a waiver of any past non-compliance with the company’s credit facilities and provide it with additional liquidity.

The transaction is expected to close on or around September 3. Under the terms of the transaction, the maturity of certain participating term loan debt will be extended to May 2024, all existing non-compliance with the terms of the Company’s credit facilities will be waived, the company will be granted a financial covenant holiday under certain participating term loan debt until the fourth quarter of 2021, and it will receive an investment of no less than $15 million in the form of a junior term loan facility.

The transaction provides J.Jill with the financial flexibility to continue to meet its obligations to its vendors in full and continue to execute on its business plan, the company said in a press release.

All vendor claims will be unimpaired and paid in the ordinary course under the transaction.