Centric Likely to Become Private Company After Restructuring Deal
18 Mai 2020 - 1:00PM
Dow Jones News
By Matt Grossman
Centric Brands Inc. has filed for chapter 11 bankruptcy
protection and expects to become a private company after reaching a
restructuring agreement with its creditors, the company said
Monday.
The New York City-based brands collective said it had a deal
with lenders Blackstone, Ares Management Corp. and HPS Investment
Partners to recapitalize and provide it with $435 million of
debtor-in-possession financing.
As part of the agreement, Centric filed for chapter 11
protection in the U.S. Bankruptcy Court for the Southern District
of New York.
Centric will likely emerge from the restructuring as a private
company, it said, when its lenders receive equity interests in the
company as part of the restructuring deal.
The brands Centric licenses for apparel, accessories and
entertainment products include Calvin Klein, Timberland, Under
Armour and Disney.
The company's shares declined more than 36% in pre-market
trading Monday morning after closing Friday at 94 cents.
Write to Matt Grossman at matt.grossman@wsj.com
(END) Dow Jones Newswires
May 18, 2020 06:45 ET (10:45 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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