Ascena Retail achieves key milestones in restructuring

23 Sep '20

1 min read

Pic: Shutterstock

The US bankruptcy court for the Eastern District of Virginia recently approved the adequacy of the Ascena Retail Group’s disclosure statement related to the solicitation of votes on its reorganisation plan and its procedures. The firm will now solicit votes from its creditors for the plan’s approval, which includes an amended restructuring support agreement.

The agreement now has the support of nearly 95 per cent of Ascena’s secured term lenders and is expected to reduce its debt by approximately $1 billion.

The hearing to consider confirmation of the plan is scheduled to commence on October 23, the company said in a press release.
The company is parent to the Ann Taylor, Lane Bryant, Loft, Lou & Grey and Justice brands.

The company has also received approval from the court on a final basis for its debtor-in- financing, which comprises a $400 million asset-based lending facility and an approximately $312 million term loan, which includes $150 million in new money, and will convert to exit financing upon the company’s emergence from the Chapter 11 process.

Fibre2Fashion News Desk (DS)

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