NEW YORK, March 17 (Reuters) - The Lycra Company, a

maker of spandex and other stretch fabrics, has filed for

Chapter 11 bankruptcy protection in Houston, Texas, on Tuesday,

seeking to shed $1.2 billion in debt.

The company's lenders agreed to provide $75 million in new

financing and to eliminate most of the company's $1.53 billion

in existing debt, according to court filings. The company said

the restructuring will not affect its manufacturing operations,

customers, vendors or employees.

Lycra said it has near unanimous support from its lenders

for a "prepackaged" restructuring, and it expects to emerge from

bankruptcy within 45 days.

The Wilmington, Delaware-based Lycra Company had been stretched

thin for years, following a 2019 acquisition by Chinese textile

company Ruyi Textile and Fashion International Group Limited,

according to court filings. Lenders took over the business in

2022 after the company defaulted on its debt, but the company

continued to underperform due to decreased demand, increased

competition from lower-priced generic spandex products,

unpredictable U.S. tariffs and lingering legal disputes with its

former owners in China, according to the company.

The company, founded in 1958 as part of DuPont de Nemours

Inc. ( DD ), was the original producer of spandex, and it remains one

of the world's leading spandex innovators, according to the

company. It has eight manufacturing facilities, three research

labs and 11 offices across North America, Europe, Asia, and

South America, with 2,000 employees worldwide.

The case is The LYCRA Company LLC, U.S. Bankruptcy Court for

the Southern District of Texas, No. 26-90399

For the debtors: Michael Torkin, Daniel Guyder, Christopher

Hunker, Clark Xue and Ramsey Scofield of Linklaters LLP; Charles

Beckham, Kenric Kattner, Arsalan Muhammad, and Kourtney Lyda of

Haynes and Boone, LLP

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