Wilton Brands announced today that its parent company Wilton Holdings has reached an agreement in principle with its two largest creditors regarding a restructuring of the company’s finances. The creditors, Deutsche Bank Trust Company Americas and JGF Credit, LLC, had filed a petition in federal court last month requesting the company be placed into involuntary Chapter 11 bankruptcy after Wilton violated debt agreements with them.
According to the statement issued by Wilton Brands about the agreement:
The parties have agreed to a continued period of forbearance during which they will work to effect the financial restructuring on terms that have been mutually agreed. As part of the agreement, JGF and DB have agreed to stand still with respect to the involuntary petition filed against Wilton Holdings on July 17, 2009. Further JGF and DB have agreed that they will withdraw the involuntary bankruptcy petition at the time of the consummation of the financial restructuring of Wilton Holdings. 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.
Wilton Brands was formed in August 2007 when EK Success, already owned by GTCR, Golder Rauner, LLC., purchased Wilton Industries and Dimensions Holdings. Earlier in 2007, EK Success had launched the Martha Stewart Crafts line in stores. EK Success was founded in 1978, and purchased in 2006 by GTCR, Golder Rauner, LLC. K & Company was formed in 1996.