Tom Gores-Backed Firm Faces Second-Lien Lenders Eyeing Debt Path

Second-lien lenders to Elevate Textiles Inc., a fabric and thread maker backed by Tom Gores’s Platinum Equity, hired law firm Ropes & Gray to help consider options for the company’s upcoming debt maturities, according to people with knowledge of the situation.

The company’s loans are trading at distressed levels while rising rates boost Elevate Textiles’s interest costs and weigh on its cash flow. Most of the fabric maker’s funded debt matures in 2024, Moody’s Investors Service wrotein September. A group of first-lien lenders is working with Rothschild & Co and Gibson Dunn & Crutcher, the people ...