J.Jill gets more breathing room on forbearance
J.Jill has once again received an extension on two forbearance agreements as it restructures its debt out of court.
The women’s apparel retailer, which received approval from lenders to move forward without having to file for bankruptcy on Sept. 14, has had its forbearance period extended to Oct. 1, 2020.
J.Jill has already had several extensions of two forbearance agreements which it originally entered in June, most recently on Sept. 1. Under the latest amendments, the respective lenders have agreed not to exercise any rights and remedies until Oct. 1, 2020 so long as, among other things, J.Jill otherwise remains in compliance with its credit facilities and complies with the terms of the agreements.
This latest extension is designed to provide additional time for J.Jill and its lenders to complete negotiations. The plan being negotiated extends the company’s debt maturities through May 2024, enabling J.Jill “to strengthen its balance sheet and better position itself for long-term growth,” the retailer previously stated. It also provides for at least $15 million of new cash in the form of a junior term loan.
J.Jill, which operates about 280 stores nationwide, expects the transaction to close on or about Sept. 30, 2020.