TRUE RELIGION EMERGES FROM BANKRUPTCY
After less than four months, True Religion Brand Jeans has emerged from Chapter 11 bankruptcy following negotiations with its key stakeholders, under a plan of reorganization approved by the Delaware Bankruptcy Court on October 5.
True Religion’s re-organization plan allows the California-based denim company to greatly de-leverage its balance sheet, reducing its term loans from $471 million to $113.5 million upon emergence and extending its debt maturities to 2022. Debt service each year will be substantially reduced, clearing the way for continued investment and company growth.
“We would like to thank our consumers, our employees, vendors, and suppliers for their unwavering support and continued dedication to the True Religion brand,” said CEO John Ermatinger. “With substantial debt burden removed, we are eager to turn our full attention to implementing our forward-thinking strategy, including improving our retail operations, new partnerships and growing the brand’s digital presence. With the consummation of this restructure, we are very excited and poised for the future.”
True Religion’s emergence from bankruptcy allows it to compete effectively with a sustainable debt structure, adequate operating liquidity and structural improvements from financial and operational restructuring.
