Party City Rehashes Restructuring Deal After Missing Financial Projections
- Tweaked plan includes issuing $232 million of secured debt
- Party retailer missed financial projections during bankruptcy
A shopper enters a Party City Holdco Inc. store in New York.
Photographer: Gabby Jones/BloombergThis article is for subscribers only.
Party City Holdco Inc. has modified a key deal with some of its biggest lenders, tweaking its plan to exit bankruptcy after struggling to meet financial projections.
Lenders that provided the party supply retailer with bankruptcy financing will now have the option to be repaid in second-lien notes instead of cash, according to court papers. Creditors backstopping Party City’s exit from bankruptcy can also purchase a slice of the new notes in addition to equity, rather than just buying the stock.