Current posture

What matters now

The LYCRA restructuring is in its closing phase: the reorganized debtors report that the plan has been substantially consummated, most jointly administered cases have already been closed, and CCS Holding—the sole remaining case—has asked the court for a final decree after representing that no motions, contested matters, adversary proceedings, or other issues remain pending. The final-decree motion Dkt. 31 requests closure effective July 31, 2026, subject to the court’s entry of the decree and completion of a final post-confirmation report. The LYCRA Company and its affiliates filed prepackaged chapter 11 cases on March 17, 2026, shortly before their principal secured obligations matured on March 31. The filing followed weakening demand, increased competition and inflationary pressure that reduced earnings and constrained liquidity against approximately $1.542 billion in funded debt. Nearly all holders of the prepetition debt supported a restructuring designed to eliminate approximately $1.2 billion of funded debt, while a CFO first-day declaration Dkt. 12 described a fast-track process intended to preserve the operating business. To fund that process, the debtors obtained final authority for a $75 million new-money, superpriority DIP…

Updated Aug 6, 2026