The Lycra Company is in the implementation phase of a prepackaged restructuring, with final DIP authority in place and the debtors now filing plan-supplement materials for emergence, including exit financing and reorganized-governance documents in the Third Plan SupplementDkt. 282. The case began on March 17, 2026, after the LYCRA group faced a near-term March 31 maturity wall across roughly $1.5 billion of prepetition debt, declining projected EBITDA and lower facility utilization, and filed with a prepackaged plan designed to eliminate about $1.2 billion of funded debt, supported by all ssTL and Euro noteholders, more than 83% of Dollar noteholders, and more than 90% of promissory noteholders through the Dean Williams First Day DeclarationDkt. 12.
The restructuring path was set at filing: the debtors sought a $75 million superpriority priming DIP notes facility, use of cash collateral, adequate protection for secured creditors, and milestones aimed at rapid confirmation and effectiveness through the DIP Financing MotionDkt. 13. The plan filed the same day provides for ssTL lenders to receive new holdco notes and common stock, Euro noteholders to receive Class A warrants, Dollar noteholders to receive Class B warrants, the promissory note to receive a nominal cash distribution, general unsecured claims to ride through unimpaired, and existing holdco equity to be canceled without recovery under the Chapter 11 PlanDkt. 16.
The court authorized interim access to the financing on the petition date and later entered a final DIP order approving the full $75 million facility, with GLAS entities as agent and collateral agent, a September 13, 2026 maturity, a $30 million minimum liquidity covenant, weekly budget testing, adequate protection liens and 507(b) claims, and waivers of surcharge, marshaling, and section 552(b) protections in favor of the DIP and prepetition secured parties through the Final DIP OrderDkt. 221. The latest docket activity points toward effective-date mechanics rather than a sale process: the debtors’ May 19 supplement adds the exit secured notes documentation, warrant agreements, investor/governance documents, and restructuring steps needed to consummate the confirmed restructuring in the Third Plan SupplementDkt. 282.