Nine West Holdings Inc has filed an amended Chapter 11 bankruptcy plan it says will reduce the company’s pre-bankruptcy debt obligations by more than US$1bn.
The proposal, Nine West said, is the result of the its engagement with creditors over many months on the “proper path forward” for its businesses and other assets.
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In addition, the plan provides “significant” near-term cash recoveries – to the tune of $105m – to stakeholders through the settlement of potential claims and causes of action against the company’s indirect equity owners.
Nine West will also receive a three-year purchase commitment from Belk Inc for an assortment of merchandise across the company’s businesses, further strengthening its operations.
The group filed for bankruptcy in April and sold its namesake and Bandolino footwear and handbag business to Authentic Brands Group (ABG) two months later in a deal valued at more than US$340m.
A hearing has been scheduled for 7 November to consider approval of the terms of the plan, after which it will be distributed to voting creditors for their consideration. The plan remains subject to bankruptcy court approval and customary closing conditions.
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