Nine West May File Bankruptcy

According to sources, Nine West Holdings Inc. (New York) is in the process of completing a deal with its creditors that would restructure almost $1.5 billion of debt as well as file for bankruptcy and sell off some parts of the retailer.

National Real Estate Investor reports that the retailer plans to use asset sales to pay off its creditors and to file for Chapter 11 court protection by March 15. In that filing, it expects to submit a restructuring plan that will have been agreed upon in advance with its creditors.

First-lien lenders are expected to be repaid in full, while second-lien lenders are expected to get the majority of the equity in the reorganized company. A small portion of the equity is also expected to go to holders of the retailer’s bonds.