The process resulted in a reduction of more than $1.2bn in long-term debt and the injection of over $75m in new capital, the company reports.
In March this year, the sustainable fibre maker announced that it had reached a restructuring support agreement with the majority of its creditors to improve Lycra’s financial position and reduce its long-term obligations.
The company added that operations were not disrupted during the restructuring and commitments to employees, customers and vendors were maintained throughout.
Following the completion of the process, Lycra plans to pursue its growth strategy by investing in innovation, customer partnerships and global operations.
The business, headquartered in Wilmington, Delaware, US, remains active in developing and producing fibre and technology solutions for the apparel and personal care sectors, and holds a portfolio of consumer brands including Lycra, Lycra Hyfit, Lycra T400, Coolmax, Thermolite, Elaspan, Supplex and Tactel.
Ownership of the company has changed as a result of the restructuring. Lycra is now supported by new equity owners, described as investment funds with a global presence that have a history of investing in the company’s securities.
In addition, there have been several changes to Lycra’s leadership following the restructuring. Dean Williams, who has served as the company’s chief financial officer since its formation over seven years ago, has been appointed interim chief executive officer.
Williams takes over from Gary Smith, who has stepped down from his position as CEO and separated from the company.
Dean Williams commented: “Emergence marks a defining moment for The LYCRA Company. We will now be a financially stronger, more focused organization that is positioned for growth. This milestone would not have been possible without our team members, whose resilience, dedication, and commitment to our customers enabled us to navigate this process without disruption. While we still have work to do to reach our full potential, we have never been better positioned to do so.”
The executive leadership team otherwise remains unchanged and will work alongside Williams with the company’s new stakeholders.
A new Board of Directors has been installed, led by Bruce Rubin as executive chairman. Rubin brings experience from the energy and chemicals sectors, with over 45 years in executive roles.
“With a strong foundation in place, The Lycra Company will be well-positioned to enhance operational excellence, accelerate innovation, deepen customer partnerships, and reinvest in our high-quality products," Rubin commented.
"We look forward to growing our distinct and trusted brands into the future. We would like to thank Gary and the departing Board for their steady leadership in guiding the Company through this pivotal period. The Board looks forward to working closely with Dean – an exceptional and trusted operational leader – as we position the Company for success.”
Lycra has been advised by Linklaters and Haynes Boone as legal counsel, Houlihan Lokey as investment banker, and FTI Consulting as financial and communications advisors.
