Dallas-based Neiman Marcus has reached a preliminary agreement with creditors holding its $5 billion in debt to allow it three additional years to turn its business around. At least one of the bondholders has not joined the agreement and plans to convince others to oppose it as well, reports Dallas News.
If the deal is implemented, the retailer said, it will “provide the company with ample runway to execute on and complete its transformation plan into a customer-centric luxury platform with a stronger capital structure.” Neiman Marcus said it would continue negotiations until mutually beneficial solution is reached.
The retailer was working on a similar negotiation with its bondholders last fall, and those talks fell apart in November, resuming again last month. It has a $2.8 billion term loan maturing in October 2020; and it has $1.6 billion in unsecured bonds.