J.Crew Group, Inc. Receives Court Approval Of First Day Motions

NEW YORK CITY — May 5, 2020 — J.Crew Group Inc. today announced that the U.S. Bankruptcy Court for the Eastern District of Virginia has granted the company interim approval for all of the first day motions related to its Chapter 11 restructuring. The approved motions will support the company’s ongoing operations during the financial restructuring process.

The court today granted J.Crew Group access to a debtor-in-possession (“DIP”) financing facility of $400 million provided by existing lenders Anchorage Capital Group L.L.C., GSO Capital Partners and Davidson Kempner Capital Management LP, among others, which, combined with the company’s projected cash flows, will support its operations during the restructuring process. The court has also authorized the company to continue paying employee wages and benefits, as well as honor all customer programs, including its loyalty programs, gift cards, returns and exchanges, among others. J.Crew Group will pay vendors for goods and services provided after the filing date on normal terms.

“The Court’s approval of our first day motions is an important step in our financial restructuring. At J.Crew Group, our customers are at the center of everything we do, and during this process this commitment doesn’t change. We remain fully operational, providing our customers with the iconic items they love and the great service they expect,” said Jan Singer, CEO, J.Crew Group. “Solidifying our financial foundation enables us to emerge healthier and stronger, positioning our business and brands to thrive for years to come. I would like to thank our associates, customers, vendors and partners for their continued support as we look to complete our restructuring as quickly as possible.”

As previously announced, on May 4, 2020, J.Crew Group reached an agreement with its lenders holding approximately 71% of its Term Loan and approximately 78% of its IPCo Notes, as well as with its financial sponsors, under which the company will restructure its debt and deleverage its balance sheet, positioning J.Crew and Madewell for long-term success. Under the terms of the Transaction Support Agreement (TSA), the company’s lenders will convert approximately $1.65 billion of the company’s debt into equity. To facilitate the restructuring contemplated by the TSA, the parent company of J.Crew Group Inc., Chinos Holdings Inc. and certain affiliates, commenced a prearranged Chapter 11 filing in the U.S. Bankruptcy Court for the Eastern District of Virginia.

For additional information about J.Crew Group’s restructuring, including access to Court filings and other documents related to the court-supervised process, please visit www.omniagentsolutions.com/chinos, call (866) 991-8218 (U.S. & Canada) and (818) 924-2298 (for tolled international calls), or email chinosinquiries@omniagnt.com.

Weil, Gotshal & Manges LLP is serving as legal counsel, Lazard is serving as investment banker and AlixPartners is serving as restructuring advisor to J.Crew Group Inc. Anchorage Capital Group and other members of an ad hoc committee are represented by Milbank LLP as legal counsel and PJT Partners LP as investment banker.

Posted May 6, 2020

Source: J.Crew Group Inc.