New Look Retail Holdings Ltd Group in the United Kingdom has agreed with its financial creditors to the key terms of a comprehensive recapitalisation transaction that will extend New Look’s facilities, deliver a new money investment of £40 million and significantly de-leverage the balance sheet. It will have funding to provide a sustainable platform for post-COVID trading.
The transaction will enable the group to invest in and deliver its strategic business plan, according to a company press release.New Look Retail Holdings Ltd Group has agreed with its financial creditors to the key terms of a comprehensive recapitalisation transaction that will extend New Look's facilities, deliver a new money investment of £40 million and significantly de-leverage the balance sheet. It will have funding to provide a sustainable platform for post-COVID trading.#
The financial creditors have executed a lock-up agreement pursuant to which they support the implementation of the transaction.
The transaction involves a number of inter-conditional components, including a re-basing of the group‘s UK leasehold obligations through a company voluntary arrangement of New Look Retailers Limited, the Group’s primary UK trading entity; a debt for equity swap on New Look’s current debt; an extension of primary working capital facilities, which provide further financial support to the group with no near-term maturities; and an injection of £40 million of new capital to support the business plan.
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