Neiman Marcus in talks with lenders for debt overhaul
today Oct 4, 2018
Neiman Marcus Group Ltd, the luxury retailer facing a $2.8 billion loan coming due in two years, has started talks with creditors about reworking its borrowings, Bloomberg reported on Wednesday, citing people familiar with the matter.
Advisers for groups of bondholders and lenders are talking to the company about options, including giving the retailer more time to pay back its loan, the report said.
In exchange, the lenders would change Neiman Marcus’s credit agreement to give creditors more power if the company’s fortunes deteriorate too much, according to the report.
Last month, Reuters reported distressed investor Marble Ridge Capital LP said that Neiman Marcus may be in default on its debt after it moved its Mytheresa business into an entity belonging to the retailer's private equity owners.
Neiman Marcus was not immediately available for comment.
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