Haynes Boone advised The LYCRA Company on the confirmation of its Chapter 11 plan. The court-approved restructuring will eliminate approximately $1.2 billion in debt from the company’s balance sheet and strengthen the global spandex and specialty fiber manufacturer’s financial foundation for future growth. Haynes Boone served as co-counsel alongside Linklaters LLP in the matter.
“This restructuring didn’t just stabilize The LYCRA Company — it reset the business for a stronger future and positioned it to stretch confidently into its next chapter,” said Haynes Boone Restructuring Partner Arsalan Muhammad. “Backed by broad stakeholder support, the company moved through Chapter 11 quickly, protected day-to-day operations and emerged with a healthier balance sheet and greater financial flexibility.”
The restructuring was supported by key lender and noteholder groups and culminated in a consensual Chapter 11 plan that received overwhelming creditor approval. The transaction also secured new funding commitments to support the reorganized company following emergence from Chapter 11 bankruptcy.
The Haynes Boone restructuring team was led by Muhammad as well as Partners Charles A. Beckham Jr. and Kenric Kattner with support from Counsel Kourtney Lyda and David Staab, and Associates Imaan Patel, Lauren Sisson and Adam Schmit. Partner Tiffany Cooke handled the litigation aspects of the matter.
Founded in 1958, The LYCRA Company is a leading developer of innovative fiber and technology solutions for the apparel and personal care industries. The restructuring positions the company to continue investing in innovation, customer relationships and long-term strategic growth while enhancing its competitive position in the global textile market.
Haynes Boone’s Restructuring Practice Group delivers solutions in high-stakes bankruptcies and distressed situations. The firm’s nationally recognized group handles complex out-of-court restructurings and Chapter 11 cases across industries including energy, technology, retail, healthcare and manufacturing.
