Neiman Marcus Group Obtains Court Approval for First Day Motions

DALLAS, May 8, 2020 /PRNewswire/ -- Neiman Marcus Group LTD LLC (the "Company") today announced that it has received interim approval from the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division for all of the first day motions related to its voluntary Chapter 11 proceedings filed on May 7, 2020.

The Court has approved Neiman Marcus Group's access to debtor-in-possession ("DIP") financing of $675 million from creditors, which will enable business continuity during proceedings. The Court has also approved motions that support continued operations, including authorizing the Company to continue to pay employee wages and benefits and maintain various customer-related programs, including honoring its loyalty programs, gift cards, credit cards, and return policies. With the access to additional financing approved by the Court, the Company will honor its commitments with vendors and be well-positioned to pay invoices for goods and services after the Company's filing date under normal payment terms.

Geoffroy van Raemdonck, Chairman and Chief Executive Officer of Neiman Marcus Group stated, "We are pleased to receive court approvals of our first day motions, which provide us with ample liquidity to operate the business and allow our dedicated associates, together with our brand partners, to continue providing magical experiences to our loyal luxury customers. This will ensure both our short-term and long-term success as a relationship and digital leader in luxury retail."

"We thank all our extraordinary associates for their unwavering commitment to Neiman Marcus Group during these unprecedented times. Every day I am inspired by their continued efforts to go above and beyond to delight our customers, our communities, and each other with the love and care that is unique to us," continued Mr. van Raemdonck.

On May 7, 2020, the Company announced that it entered into a binding Restructuring Support Agreement ("RSA") with holders representing over two-thirds of the Company's outstanding debt. The RSA includes commitments from holders of over 77% of the Debtors' Extended Term Loans, over 99% of the Debtors' Second Lien Notes, and over 69% of the Debtors' Third Lien Notes to equitize their debt and to backstop the full amount of the proposed $675 million DIP financing facility and a $750 million exit financing facility.

Upon emergence, the Company's planned capital structure is anticipated to be long-dated with no near-term maturities and to eliminate approximately $4 billion of its existing debt. To implement the RSA, the Company has commenced voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division.

Kirkland & Ellis LLP is serving as legal counsel to the Company, Lazard Ltd. is serving as the Company's investment banker, and Berkeley Research Group is serving as the Company's financial advisor.

The Extended Term Loan Lenders are represented by Wachtell, Lipton, Rosen & Katz as legal counsel and Ducera Partners LLC as investment banker.

The Noteholders are represented by Paul, Weiss, Rifkind, Wharton & Garrison LLP as legal counsel and Houlihan Lokey as investment banker.

Court filings and other documents related to the Chapter 11 proceedings are available on a separate website administered by the Company's claims agent, Stretto. For inquiries regarding the restructuring, please visit https://cases.stretto.com/NMG.

About Neiman Marcus Group

Neiman Marcus Group is a luxury, multi-branded, omni-channel fashion retailer conducting integrated store and online operations under the Neiman Marcus, Bergdorf Goodman, Neiman Marcus Last Call, and Horchow brand names. For more information, visit http://www.neimanmarcusgroup.com.

Forward-Looking Statements

Neiman Marcus Group has included statements in this press release that constitute "forward‐looking statements. As a general matter, forward‐looking statements are those focused on future or anticipated events or trends, expectations, and beliefs including, among other things, the Company's expectations with respect to its Chapter 11 proceedings. Such statements are intended to be identified by using words such as "believe," "expect," "intend," "estimate," "anticipate," "will," "project," "plan" and similar expressions in connection with any discussion of future operating or financial performance. Any forward‐looking statements are and will be based upon the Company's then‐current expectations, estimates and assumptions regarding future events and are applicable only as of the dates of such statements. Readers are cautioned not to put undue reliance on such forward‐looking statements. Such forward‐looking statements are not guarantees of future performance and involve risks and uncertainties, and actual results may differ materially from those projected in this press release for numerous reasons, including factors outside the Company's control. The Company undertakes no obligation to update or revise any forward‐looking statements, whether as a result of new information, future events or otherwise.

SOURCE The Neiman Marcus Group, Inc.

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