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Women’s Retailer J. Jill Has 10 Days to Avoid Bankruptcy Filing

  • Holders of 70% of loans have agreed to an out-of-court plan
  • Company plans Chapter 11 if it fails to reach 95% threshold
relates to Women’s Retailer J. Jill Has 10 Days to Avoid Bankruptcy Filing

Source: Business Wire

J. Jill Inc. has just 10 days to get permission from the vast majority of its lenders for a deal that would extend the struggling retailer’s debt maturities, excuse it from financial covenants and give it fresh cash.

The company said in a statement Tuesday that it plans to file for bankruptcy if it fails to get lenders holding 95% of its term loans on board with the plan by Sept. 11. It’s struck a deal with lenders holding 70% of the debt to extend certain debt maturities to 2024, grant a financial covenant holiday and provide for at least $15 million of new cash in the form of a junior term loan.