On March 17, 2026, The LYCRA Company, a global leader in developing fibers and technological solutions for the apparel and personal care industries, announced that it has reached a Restructuring Support Agreement (RSA) with the vast majority of its creditors to reduce approximately $1.2 billion in long-term debt and establish a sustainable capital structure. This will allow the company to complete its capital restructuring and lay the foundation for long-term financial stability and growth.
The RSA has received overwhelming support from holders of the company's senior secured term loan, 16.000% senior secured notes, and 7.500% senior secured notes, who have agreed to vote in favor of a pre-packaged restructuring plan (the "Pre-Packaged Plan"). To implement this Pre-Packaged Plan, the company and certain affiliated entities have filed a voluntary Chapter 11 bankruptcy petition in the U.S. Bankruptcy Court for the Southern District of Texas.
The Pre-Packaged Plan is the result of months of productive discussions with the company's primary financial creditors. With near-unanimous stakeholder support, the company expects to complete its financial restructuring swiftly and exit Chapter 11 proceedings within 45 days.
Gary Smith, CEO of The LYCRA Company, stated, "The LYCRA Company's products have long been a symbol of quality, offering lasting comfort, fit, and performance in various apparel and personal care products. Today marks an important milestone for The LYCRA Company, as we take decisive action to significantly reduce our debt and strengthen our financial foundation. With this move, we will continue to serve our customers, support our partners, and provide the high-quality products they rely on. I want to thank our team members for their dedication and our loyal customers and partners for their continued support throughout this process."
The company is seeking customary "first day" relief to ensure that it can continue operating its business throughout the restructuring process. As part of the first-day motions, the company will seek approval to continue paying all valid amounts owed to vendors and suppliers in the ordinary course of business. To support these ongoing operations, the company has secured a $75 million debtor-in-possession financing (DIP financing) commitment, as well as over $75 million in exit financing, which will be used to refinance the DIP financing and provide funds to the company after completing the Chapter 11 process.
Importantly, certain entities within The LYCRA Company are not included in this Chapter 11 filing.