Milbank, Tweed, Hadley & McCloy LLP represents Credit Suisse AG, Cayman Islands Branch, as prepetition term loan agent and DIP term loan agent (the “Agent”), under an $820 million senior secured term loan credit facility and a $105 million senior secured DIP term loan credit facility, respectively, and is working with a steering committee of secured term loan lenders and DIP lenders under such facilities (the “Steering Committee”) in connection with the restructuring of The Gymboree Corporation and its affiliates (collectively, “Gymboree”), a children’s retail clothing company.
Gymboree commenced chapter 11 cases on June 11, 2017 after several months of negotiations with the Agent and the Steering Committee, with approximately $1.1 billion in outstanding funded debt obligations and a comprehensive pre-negotiated restructuring plan, the key terms of which were devised by Gymboree, the Agent, and the Steering Committee. Gymboree’s plan of reorganization, which the bankruptcy court confirmed on September 7, 2017, contemplates a substantial debt-for-equity exchange that eliminates approximately $800 million of funded debt obligations, an up to $80 million rights offering fully backstopped by the Steering Committee, and a rationalization of Gymboree’s retail footprint.
The Milbank team is led by Financial Restructuring partner Dennis Dunne with partner Evan Fleck and associates Michael Price and Brian Zucco; Alternative Investments partner Albert Pisa; Capital Markets partner Paul Denaro; Corporate partner Scott Golenbock; Tax partner Russell Kestenbaum; and Alternative Investments special counsel Jennifer Harris.
