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Centric Brands to restructure

Christian Fernsby ▼ | May 19, 2020
Centric Brands (CTRC) will restructure and has entered into an agreement with virtually all of its lenders, where is will receive $435 million in debtor-in-possession (DIP) financing led by Blackstone, Ares Management Corporation, and HPS Investment Partners to “recapitalize the company,” allowing it to continue to operate without interruption.
Centric Brands
Chapter 11   Centric Brands
Centric Brands said it expects a “timely emergence” from bankruptcy that will reduce about $700 million in debt and allow the company to become privately-owned by its lenders. The retailer anticipates through the DIP financing that it will continue to meet its obligations to employees, licensors, suppliers, and vendors.

Through the restructuring agreement, investment firm Blackstone will take an equity interest in Centric Brands and assume its second lien debt. The company’s stock will be extinguished once the restructuring agreement has been consummated.


 

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