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TRUE RELIGION: Unsecured Creditors to Get Full Payment in Plan

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True Religion Apparel, Inc. and certain of its affiliated debtors filed with the United States Bankruptcy Court for the District of Delaware a Joint Chapter 11 Plan of Reorganization and a Disclosure Statement on June 16, 2020.

In connection with the Prepetition ABL Credit Agreement, the Debtors entered into that certain Copyright Security Agreement, Patent Security Agreement, and Trademark Security Agreement, each dated as of November 15, 2019 (as amended, restated, amended and restated, waived, supplemented, or otherwise modified from time to time, collectively, the “Prepetition ABL Security Agreements”), by and between the Debtors, as grantors, and the Prepetition ABL Agent, as collateral agent for the Prepetition ABL Secured Parties.

Class 6 General Unsecured Claims will receive distributions of cash from the avoidance actions trust pursuant to the terms of the Plan and the Avoidance Actions Trust Agreement.

Class 7: Equity Interests in TRLG Intermediate Holdings, LLC, will be cancelled and discharged. Holders of Class 7 Equity Interests will not receive a Distribution on account of such Interests.

The New ABL Facility will provide, as of the Effective Date, sufficient funding or deemed funding, together with Exit Term Facility and the Debtors’ cash on hand, to satisfy any DIP ABL Facility Claims and obligations required to be paid in Cash on the Effective Date of the Plan in full.

The Reorganized Debtors will be authorized to enter into the Exit Term Facility on the Effective Date. The Confirmation Order will be deemed approval of the Exit Term Facility and the Exit Term Loan Credit Documents, and all transactions contemplated thereby, and authorization of all actions to be taken, undertakings to be made, and obligations to be incurred by the Reorganized Debtors in connection therewith.

Except as otherwise provided in the Plan or the Confirmation Order, all Cash necessary for the Reorganized Debtors to make payments required pursuant to the Plan will be obtained from the Exit Term Facility, New ABL Facility and the Reorganized Debtors’ Cash balances, including Cash from operations. Cash payments to be made pursuant to the Plan will be made by the Reorganized Debtors.

A full-text copy of the Disclosure Statement dated June 16, 2020, is available at https://tinyurl.com/yajxltf2 from PacerMonitor at no charge.

Counsel for the Debtors:

COLE SCHOTZ P.C.
Justin R. Alberto
500 Delaware Avenue, Suite 1410
Wilmington, Delaware 19801
Telephone: (302) 652-3131
E-mail: jalberto@coleschotz.com

– and –

Seth Van Aalten
1325 Avenue of the Americas, 19th Floor
New York, New York 10019
Telephone: (212) 752-8000
E-mail: svanaalten@coleschotz.com

About True Religion Apparel

Founded in Los Angeles, Calif., in 2002, True Religion Apparel, Inc. and its affiliates design, market, sell and distribute premium fashion apparel centered on their core denim products using the brand names “True Religion” and “True Religion Brand Jeans.” The companies’ products are distributed through wholesale and retail channels and through the website. On a global basis, the companies had 87 retail stores and over 1,000 employees as of April 13, 2020.

True Religion Apparel and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 20-10941) on April 13, 2020. At the time of the filing, Debtord disclosed assets of between $100 million and $500 million and liabilities of the same range.

Judge Christopher S. Sontchi oversees the cases.

Debtors tapped Cole Schotz P.C. as legal counsel; Akin Gump Strauss Hauer & Feld, LLP as corporate counsel; Province, Inc. as financial advisor; Retail Consulting Services, Inc. as real estate advisor; and Stretto as claims and noticing agent. Richard Lynch of HRC Advisory, LP is Debtors’ interim chief financial officer.About True Religion Apparel

Founded in Los Angeles, Calif., in 2002, True Religion Apparel, Inc. and its affiliates design, market, sell and distribute premium fashion apparel centered on their core denim products using the brand names “True Religion” and “True Religion Brand Jeans.” The companies’ products are distributed through wholesale and retail channels and through the website at www.truereligion.com. On a global basis, the companies had 87 retail stores and over 1,000 employees as of April 13, 2020.

True Religion Apparel and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. D. Del. Lead Case No. 20-10941) on April 13, 2020. At the time of the filing, Debtord disclosed assets of between $100 million and $500 million and liabilities of the same range.

Judge Christopher S. Sontchi oversees the cases.

The Debtors tapped Cole Schotz P.C. as legal counsel; Akin Gump Strauss Hauer & Feld, LLP as corporate counsel; Province, Inc., as financial advisor; Retail Consulting Services, Inc., as real estate advisor; and Stretto as claims and noticing agent. Richard Lynch of HRC Advisory, LP is Debtors’ interim chief financial officer.

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