Tom Gores-Backed Fabric Maker Seeks Support for Deal (Correct)

Elevate Textiles Inc. is soliciting creditor support for a deal to have debtholders provide a liquidity boost to the company, with first-lien lenders receiving a vast majority of equity in a reorganized company, according to people familiar with the situation.

The negotiations come as the fabric and thread maker backed by Tom Gores’s Platinum Equity needs to address looming debt maturities, including a first-lien term loan due in 2024.

Messages left with the Elevate and Platinum were not returned.

Under the proposal, the company would receive around $100 million in new financing that would be mostly backstopped by first-lien ...