Belk has published its plans for its Chapter 11 bankruptcy filing and reorganization.
The large retail store expects to file Chapter 11 on February 24, with the confirmation hearing to approve the restructuring to be held the same day, at 2 p.m. PT. “Package, a day of reorganization”.
The news was not a surprise. On January 26, Belk said he was Planning file for Chapter 11 bankruptcy protection with a plan to recapitalize his business and reduce his debt burden by about $ 450 million. The retailer will enter into a restructuring support agreement with its majority owner, Sycamore Partners, and holders of more than 75% of its senior term loan debt and holders of 100% of its term loan debt. second row.
Belk said the plan is to recapitalize the business, significantly reduce debt by around $ 450 million, and extend the terms of all term loans until July 2025.
Pursuant to the restructuring, Sycamore Partners will retain majority control of Belk. Belk has received funding commitments for $ 225 million in new capital from Sycamore Partners, KKR and Blackstone Credit, and some of its existing senior term lenders. The retailer said it will continue to pay its suppliers and will also continue normal operations throughout its financial restructuring process.
Based in Charlotte, North Carolina, Belk operates nearly 300 stores in 16 southeastern states. The former family business was bought in 2015 in a $ 3 billion deal by Sycamore Partners.
