J.Jill Inc. has again bought more time for talks with lenders as the women’s clothing retailer faces the possibility of filing for bankruptcy after its liquidity and turnaround efforts were disrupted by the coronavirus pandemic, WSJ Pro Bankruptcy reported. The Quincy, Mass., company said yesterday that a majority of its term loan lenders and shareholders support an out-of-court financial restructuring transaction that would push back debt maturities by two years, until May 2024. A potential out-of-court deal is contingent on participation by lenders holding at least 95 percent of the company’s term loans by Sept. 11. The retailer said it is working to obtain the necessary consent. If the out-of-court transaction doesn’t garner enough support, J.Jill said that lenders holding more than 70 percent of its term loans and shareholders holding a majority of the equity of the company have agreed to a prepackaged chapter 11 reorganization. “While the company hopes to receive the required consents to execute the out-of-court transaction, the company anticipates that the in-court transaction would be a swift process,” J.Jill said. Under the out-of-court agreement, J.Jill would get as much as $15 million in additional liquidity through a junior term loan. If the retailer files for bankruptcy, it would get additional financing of up to $75 million to support the chapter 11 process.
