Neiman Marcus Group Receives Court Approval of Reorganization Plan

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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.

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