- Sequential Brands Group (NASDAQ:SQBG) has started voluntary Chapter 11 proceedings in the US Bankruptcy Court, Delaware, for its debt-ridden balance sheet ceases the lifestyle brand's operation capabilities.
- The news sent stock down 31% to trade at $8.32 at current pixel time.
- The company seeks approval to facilitate transaction and sale of its assets through court-supervised process. In connection with this in-court process, the company will be obtaining $150M in debtor-in-possession financing from its existing Term B Lenders.
- Sequential says that it expects this new financing, together with cash generated from ongoing operations, to provide ample liquidity to support its operations during the sale process.
- Take a look at the company's balance sheet.
- Earlier, Sequential Brands jumps after getting a default waiver extension until June 7