The process resulted in the reduction of more than $1.2bn in long-term debt and the injection of $75m in new capital, the company reported.
In March this year, the sustainable fiber maker announced that it had reached a restructuring agreement with a majority of creditors to improve Lycra’s financial position and reduce its long-term liabilities.
The company added that operations were not interrupted during the restructuring and commitment to employees, customers and vendors was maintained at all times.
Following the completion of the process, Lycra plans to pursue its growth strategy by investing in innovation, customer relationships and global operations.
The business, headquartered in Wilmington, Delaware, US, is active in the development and production of fiber and technology solutions for the apparel and personal care sectors, and owns a portfolio of consumer products including Lycra, Lycra Hyfit, Lycra T400, Coolmax, Thermolite, Elaspan, Supplex and Tactel.
The ownership of the company has changed due to restructuring. Lycra is now backed by new shareholders, described as investment funds with a global track record of investing in the company’s securities.
In addition, there were many changes in the leadership of Lycra after the reorganization. Dean Williams, who has served as the company’s chief financial officer since its inception seven years ago, has been named interim chief executive.
Williams takes over from Gary Smith, who has stepped down as CEO and parted ways with the company.
Dean Williams commented: “The emergency marks an important time for LYCRA Company. We will now be a financially strong, focused organization poised for growth. This milestone would not have been possible without our team members, whose tenacity, dedication, and commitment to our customers have helped us navigate this process without disruption. Although we have a better chance of doing it, we have never done better.”
The senior leadership team remains intact and will work with Williams and 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 chemical sectors, with more than 45 years in senior roles.
“With a strong foundation in place, The Lycra Company will be well-positioned to improve efficiency, accelerate innovation, deepen customer relationships, and reinvest in our high-quality products,” noted Rubin.
