You are using an older browser version. Please use a supported version for the best MSN experience.

Party City files for Chapter 11 with $150 million DIP loan from bondholders

MarketWatch logo MarketWatch 1/18/2023 Ciara Linnane
logo, company name © Marketwatch
MARKET PULSE

Party City Holdco Inc. filed for Chapter 11 bankruptcy protection late Tuesday in the U.S. Bankruptcy Court for the Southern District of Texas, according to a regulatory filing. The company has a debtor-in-possession, or DIP loan, of $150 million to enable it to continue operations while it reorganizes. The company has a pre-arranged restructuring support agreement with a bondholder group that holds more than 70% of the company’s senior debt. “In the face of pandemic headwinds, a global supply chain crisis, and other macroeconomic challenges that have faced our industry, we have made significant strides in PCHI’s ongoing transformation – establishing a solid foundation for long-term growth and continued success as the market leader in the celebrations space,” said CEO Brad Weston in a statement. The restructuring is expected to be completed in the second quarter. In the meantime, the company’s more than 800 stores remain open ,as well as its website.

AdChoices
AdChoices

More from Marketwatch

image beaconimage beaconimage beacon