Elevate Textiles, the fabric maker owned by Platinum Equity, reached an out-of-court restructuring deal in which its lenders will take control, WSJ Pro Bankruptcy reported. The restructuring deal reduces the company’s debt load to $384 million from $778 million. That leaves Platinum with a 2% stake in the restructured company and creditors taking the rest, a person familiar with the matter said. Elevate Textiles is being advised by the law firm Milbank, while first-lien lenders have engaged Gibson, Dunn & Crutcher and second-lien lenders are represented by Ropes & Gray, people familiar with the matter said. Platinum Equity acquired the predecessor of Elevate in 2016. The company, which makes fabrics for automotive, apparel, interior furnishing and industrial applications, has struggled with the cost of servicing its debt.
