True Re­li­gion Brand Jeans has se­cured crit­i­cal stake­holder sup­port for a com­pre­hen­sive fi­nan­cial re­cap­i­tal­iza­tion of the com­pany’s cap­i­tal struc­ture. In sign­ing a Re­struc­tur­ing Sup­port Agree­ment (“RSA”) with the sub­stan­tial ma­jor­ity of its Term Loan Lenders and its Spon­sor, Tower­brook Cap­i­tal Part­ners, the com­pany will re­duce its debt by over US $350 mil­lion and con­vert it into the sub­stan­tial ma­jor­ity of the re­or­ga­nized Com­pany’s eq­uity.

To im­ple­ment the terms of the pre­ar­ranged re­struc­tur­ing ex­pe­di­tiously, the com­pany filed a vol­un­tary Chap­ter 11 pe­ti­tion in the United States Bank­ruptcy Court for the District of Delaware, and ex­pects it will take 90 to 120 days to ob­tain con­fir­ma­tion of its pre-ar­ranged plan by the Bank­ruptcy Court.

Through­out the im­ple­men­ta­tion of this process, True Re­li­gion will con­tinue to op­er­ate its busi­ness with­out in­ter­rup­tion to cus­tomers, em­ploy­ees and busi­ness part­ners. “Af­ter a care­ful re­view, we are tak­ing an im­por­tant step to re­duce our debt, rein­vig­o­rate True Re­li­gion’s iconic brand and po­si­tion the com­pany for fu­ture growth and suc­cess,” said Pres­i­dent and CEO of True Re­li­gion, John Er­matinger. “By dra­mat­i­cally im­prov­ing our cap­i­tal struc­ture 24 months in ad­vance of our term loan ma­tu­rity, we will con­tinue busi­ness oper­a­tions as usual and pro­vide our em­ploy­ees and busi­ness part­ners the long-term sta­bil­ity they need, while pro­vid­ing the nec­es­sary flex­i­bil­ity to in­vest in grow­ing our dig­i­tal foot­print, build­ing con­nec­tions with cus­tomers, and im­prov­ing or­ga­ni­za­tional com­pe­ten­cies. I want to rec­og­nize our lender com­mu­nity, our pri­vate eq­uity owner, Tower­brook Cap­i­tal Part­ners, and our fi­nan­cial and le­gal ad­vi­sors for ne­go­ti­at­ing a con­struc­tive out­come for the com­pany. Im­por­tantly, I want to thank our ded­i­cated em­ploy­ees for re­main­ing fo­cused on the busi­ness, and our loyal cus­tomers and val­ued busi­ness part­ners for their sup­port through­out this process.”

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