J.Jill Announces Transaction Support Agreement to Strengthen its Balance Sheet and Position the Company for Long-Term Growth
- The company is working actively with the term loan lenders to obtain the necessary consents to implement the transaction
- All non-compliance with the terms of the company’s credit facilities would be waived in connection with the transaction
- Transaction would provide the company with additional liquidity
- J.Jill plans to meet its obligations to its vendors in full
today announced that with the support of a majority of the Company’s shareholders, it has entered into a Transaction Support Agreement ("TSA") with lenders holding greater than 70.0% of the Company’s term loans ("Consenting Lenders") on the principal terms of a financial restructuring ("Transaction") that would result in a waiver of any past non-compliance with the terms of the Company’s credit facilities and provide the company with additional liquidity.
If the Transaction is consented to by the requisite term loan lenders, the Transaction will be consummated on an out-of-court basis. The out-of-court Transaction would extend the maturity of certain participating debt by 2 years, through May 2024, enabling the Company to strengthen its balance sheet and better position itself for long-term growth. The Company is working actively with the Consenting Lenders to obtain the necessary consents.
In the event that the Transaction does not receive the required consents, the parties to the TSA have agreed to a prepackaged plan of reorganization under Chapter 11 of the United States Code (the "In-Court Transaction") the key terms of which have been negotiated, including additional financing during the Chapter 11 process.
finance.yahoo.com/ne...pport-120100981.html
- The company is working actively with the term loan lenders to obtain the necessary consents to implement the transaction
- All non-compliance with the terms of the company’s credit facilities would be waived in connection with the transaction
- Transaction would provide the company with additional liquidity
- J.Jill plans to meet its obligations to its vendors in full
today announced that with the support of a majority of the Company’s shareholders, it has entered into a Transaction Support Agreement ("TSA") with lenders holding greater than 70.0% of the Company’s term loans ("Consenting Lenders") on the principal terms of a financial restructuring ("Transaction") that would result in a waiver of any past non-compliance with the terms of the Company’s credit facilities and provide the company with additional liquidity.
If the Transaction is consented to by the requisite term loan lenders, the Transaction will be consummated on an out-of-court basis. The out-of-court Transaction would extend the maturity of certain participating debt by 2 years, through May 2024, enabling the Company to strengthen its balance sheet and better position itself for long-term growth. The Company is working actively with the Consenting Lenders to obtain the necessary consents.
In the event that the Transaction does not receive the required consents, the parties to the TSA have agreed to a prepackaged plan of reorganization under Chapter 11 of the United States Code (the "In-Court Transaction") the key terms of which have been negotiated, including additional financing during the Chapter 11 process.
finance.yahoo.com/ne...pport-120100981.html
Trade active:
J. Jill Inc. has just 10 days to get permission from the vast majority of its lenders for a deal that would extend the struggling retailer’s debt maturities, excuse it from financial covenants and give it fresh cash.
The company said in a statement Tuesday that it plans to file for bankruptcy if it fails to get lenders holding 95% of its term loans on board with the plan by Sept. 11. It’s struck a deal with lenders holding 70% of the debt to extend certain debt maturities to 2024, grant a financial covenant holiday and provide for at least $15 million of new cash in the form of a junior term loan.
The company said in a statement Tuesday that it plans to file for bankruptcy if it fails to get lenders holding 95% of its term loans on board with the plan by Sept. 11. It’s struck a deal with lenders holding 70% of the debt to extend certain debt maturities to 2024, grant a financial covenant holiday and provide for at least $15 million of new cash in the form of a junior term loan.