True Religion Confirms Reorg Plan With Lenders’ Equity Control

Bankrupt denim retailer True Religion Apparel Inc. won preliminary court approval of its reorganization plan that hands a bulk of equity to term loan lenders and keeps more than 50 stores open for business.

Under a settlement reached over the weekend that resolved plan objections, a group holding term loans of more than $65 million will accept 88% of the reorganized company equity, lower than the 95% originally suggested, Justin R. Alberto of Cole Schotz P.C., said at a virtual hearing Monday held by the U.S. Bankruptcy Court for the District of Delaware.

The maximum equity available to management under ...