The Lycra Company, a major spandex manufacturer, has filed for Chapter 11 bankruptcy protection in Texas. The filing comes as part of a restructuring deal that will see most of the company's debt written off after creditors took control of the business. The move follows years of financial stress for the synthetic fiber producer.

Lycra, known for its stretch fabrics used in clothing and textiles worldwide, has struggled with mounting debt obligations. The bankruptcy filing allows the company to implement a court-supervised restructuring plan while continuing operations. Creditors have agreed to take control of the business as part of the debt-for-equity swap arrangement.

The Chapter 11 filing provides Lycra with protection from creditors while it reorganizes its finances. The restructuring deal represents a significant shift in ownership, with debt holders becoming the new owners of the company. This bankruptcy case highlights the challenges facing textile manufacturers in a competitive global market.