The LYCRA Company to Eliminate Over $1.2 Billion in Debt Through Restructuring

Prepackaged Chapter 11 plan will strengthen the company's financial foundation and position it for long-term growth.

Mar. 17, 2026 at 7:51am

Got story updates? Submit your updates here. ›

The LYCRA Company, a global leader in fiber and technology solutions for the apparel and personal care industries, announced that it has entered into a restructuring support agreement with the majority of its creditors to eliminate approximately $1.2 billion in long-term debt. The company has filed for a prepackaged Chapter 11 bankruptcy to implement the restructuring plan, which has overwhelming support from its key financial stakeholders. The LYCRA Company expects to complete the process and emerge from bankruptcy within 45 days.

Why it matters

The LYCRA Company's debt reduction and restructuring will help strengthen its financial foundation and position the business for long-term stability and growth. As a major supplier of innovative fibers and technologies to the apparel and personal care industries, the company's ability to operate on a more sustainable financial footing is important for its customers and partners.

The details

Under the prepackaged restructuring plan, the LYCRA Company will eliminate approximately $1.2 billion in long-term debt. The plan has the overwhelming support of the company's senior secured term loan, 16.000% Senior Secured Notes, and 7.500% Senior Secured Notes holders, who have agreed to vote in favor of the reorganization. To implement the plan, the LYCRA Company and certain affiliates have filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas.

  • The LYCRA Company filed for Chapter 11 bankruptcy on March 17, 2026.
  • The company expects to complete the restructuring process and emerge from bankruptcy within 45 days.

The players

The LYCRA Company, LLC

A global leader in developing fiber and technology solutions for the apparel and personal care industries.

Gary Smith

Chief Executive Officer of The LYCRA Company.

Got photos? Submit your photos here. ›

What they’re saying

“The LYCRA Company's products have long been a symbol of quality, delivering benefits like lasting comfort, fit, and performance across a wide variety of apparel and personal care applications.”

— Gary Smith, Chief Executive Officer

What’s next

The company has obtained commitments for $75 million in debtor-in-possession financing and more than $75 million in exit financing to support its operations during and after the restructuring process.

The takeaway

The LYCRA Company's debt restructuring will help strengthen its financial foundation and position the business for long-term stability and growth, allowing it to continue serving its customers and partners with its innovative fiber and technology solutions.