DALLAS: Neiman Marcus Group Inc is closing in on a deal with lenders led by Pacific Investment Management Co that would slash the department-store chain’s debt load by more than half in exchange for control of the company, according to people with knowledge of the matter.
The plan would be part of a bankruptcy court filing that could come as soon as this week, the people said. Lenders including Pimco, Davidson Kempner Capital Management and Sixth Street Partners would provide the company with more than US$600mil to stay in business during the court process, said the people, who asked not to be identified because the discussions are private. Those lenders and others would swap their debt for equity in the reorganised company.