Tailored Brands files for bankruptcyChristian Fernsby ▼ | August 3, 2020
Tailored Brands and certain of its subsidiaries announced that it has entered into a restructuring support agreement (“RSA”) with more than 75% of its senior lenders.
Bankruptcy Tailored Brands
Topics: Tailored Brands
The Company has received commitments for $500 million in debtor in possession (“DIP”) financing from its existing revolving credit facility lenders.
Following Court approval, this financing, combined with cash on hand (including approximately $90 million of restricted cash that the Consenting Term Loan Lenders have agreed to unrestrict and make available to the Company subject to certain terms and conditions), and cash flow generated by the Company’s ongoing operations, is expected to be sufficient to meet the Company’s operational and restructuring needs.
The RSA further contemplates that the DIP financing will convert to a $400 million revolving credit facility from existing lenders upon the Company’s emergence from Chapter 11. In addition to the financing relief described above, Tailored Brands has filed customary motions with the Court intended to allow the Company to operate in the ordinary course. ■