Thu 04/20/2023 15:42 PM
Elevate Textiles and sponsor Platinum Equity are negotiating with lenders to the textiles maker on a potential deal to be executed in a bankruptcy filing which would hand over substantially all reorganized equity to lenders in exchange for debt cancellation, according to sources.
Platinum Equity is expected to receive a small amount of new equity following restructuring, the sources said. Lenders are also expected to receive takeback paper, they added.
Negotiations are ongoing, and the parties may execute a restructuring out of court, the sources cautioned.
The first lien term loan due 2024 was indicated at 53/56, and the second lien term loan due 2025 was indicated at 8/12, according to Solve Advisors.
Elevate and Platinum Equity did not immediately respond to requests for comment.
--Adelene Lee, Geoff Burrows, Harvard Zhang
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