U.K. discount retailer Matalan will file for Chapter 15 court protection in the U.S. on Wednesday as part of broader measures to buttress its balance sheet in the aftermath of pandemic-inflicted closures, Bloomberg News reported. The company will seek “certain interim relief” under Chapter 15 and recognition for its debt restructuring in the U.K., according to a statement Tuesday. Chapter 15 of U.S. bankruptcy law shields foreign companies from lawsuits by U.S. creditors while they reorganize in another country. The retailer used a U.K. court procedure known as a scheme of arrangement. As part of the deal approved in London yesterday, lower-ranking bondholders agreed to receive more debt as interest instead of cash. The company has 474 million pounds ($612 million) in net debt and as part of the agreement it will obtain 50 million pounds in fresh financing. Read more
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