J Jill Declares Transaction Support Agreement (TSA) to consolidate its Balance Sheet and Position the Company for Long-Term Growth

J.Jill, Inc. has declared a Transaction Support Agreement on 1st September2020 with Consenting lenders, holding greater than 70.0% of the Company’s term loan, with the support of its majority shareholders. The agreement is based on financial restructuring (“Transaction”) that would abandon any past non-compliance through the Company’s credit facilities and provide additional liquidity.

The transaction will be achieved on an out-of-court basis after the consent of the requisite term loan lenders. The out-of-court Transaction would extend the certain participation debt maturity by 2 years, through May 2024. This will make the Company into a better position for long term growth and enable it to consolidate its balance sheets. The Company is operational with Consenting lenders to get the necessary consents.

The company is hoping to get the required consents to perform the out-of-court Transaction but incase the Transaction does not get the necessary consents, then the parties involved in TSA will follow the Chapter 11 of the United States Code (the “In-Court Transaction”) by negotiating the key terms which also include the additional financing during the Chapter 11 process.The company expects that the In-court Transaction would be a rapid process in which claims of all vendors would be unaffected and paid in full, and from which the healthy balance sheet of the company would emerge.

The Interim CEO Jim Scully said:

“J.Jill has been buoyed by a strong direct business and a loyal customer base, and the transaction proposed in this agreement will enable our company to emerge from this challenging stretch in a position of strength”

He further added:

“I am grateful for the confidence and support of many of our lenders and shareholders as we work together to advance the best interests of our employees, vendors and customers and position our company for long-term success.”

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