WOODRIDGE, Ill.–Wilton Brands has announced that its parent company, Wilton Holdings, and its subsidiaries, have come to an agreement with their largest creditors, JGF Credit, LLC, and Deutsche Bank Trust Company Americas, in regards to a comprehensive restructuring of Wilton Holdings’ capital structure.
JGF and DB have agreed to stand still with respect to the involuntary petition filed against Wilton Holdings on July 17, 2009, a release said, and at the completion of the financial restructuring of Wilton Holdings they will withdraw their petition.
“The company is optimistic that the restructuring will be consummated in the near term and will position Wilton Holdings as a stronger, more financially viable company,” said the release.
Last month the company issued a statement to respond to reports that the company was in Chapter 11, which it denied. The company explained at that time that due to certain breaches of its loan covenants that have been previously disclosed, creditors of the parent company of Wilton Brands Inc. had filed an involuntary petition against Wilton Holdings.