Neiman Marcus Group Receives Court Approval of Reorganization Plan

DALLAS, Sept. 4, 2020 /PRNewswire/ -- The U.S. Bankruptcy Court for the Southern District of Texas, Houston Division today issued a ruling confirming Neiman Marcus Group LTD LLC's (the "Company") Plan of Reorganization ("the Plan"). This clears the way for the Company's emergence from Chapter 11 proceedings with a substantially reduced debt load and significant new funding in a strengthened capital structure. With this plan confirmation, the Company intends to emerge by September 30, once all conditions have been finalized, with the full support of its creditors and new equity shareholders.

Geoffroy van Raemdonck, Chairman and Chief Executive Officer of Neiman Marcus Group stated, "This is an important milestone in our Chapter 11 process and an exciting day for the future of our company, as it sets the stage for our emergence. Throughout this process, I've been so impressed by the commitment of our associates, who continue to extend passion and love for our customers. I'm also grateful to our brand partners for standing with us and believing in our business. I remain inspired by the opportunity to continue to surprise and delight our customers online, in-store, and at home as we continue on our journey to become the preeminent luxury platform."

Mr. van Raemdonck continued, "Even in a continually evolving retail environment, we continue to succeed and exceed our budget. NMG is positioned to win thanks to our differentiated and deep customer-associate relationships, the mutual trust of our lenders and brand partners, and our accelerated digital transformation."

Upon emergence, the Company is expecting to operate with a strengthened capital structure that will eliminate more than $4 billion of existing debt and more than $200 million of interest expense, with no near-term maturities. Certain institutional investors will fund a $750 million exit financing package that would fully refinance the DIP and provide significant additional liquidity for the business. Such financing is strategically aligned with the Company's new equity shareholders. The exit Term Loan financing is in addition to the liquidity provided by the $900 million ABL led by Bank of America and a consortium of commercial banks. With the exit financing and existing ABL, the Company has the strategic capital available to support its business and transformation initiatives through emergence and beyond.

Additional Information
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 Neiman Marcus Group LTD LLC

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