A roundtable discussion of the potential legal actions that could be forthcoming in the Chapter 11 filings of Aeropostale and Vestis Retail Group.
Vestis filed for bankruptcy last month after its pre-petition sponsor Versa Capital provided a USD 40m third lien loan. Versa then subsequently made a credit bid for the company through its third lien exposure. The unsecured creditors committee have so far not objected to the credit bid as concessions are made to satisfy trade-dominated group.
Separately, Aeropostale filed for bankruptcy after alleging its major sourcing provider MGF Sourcing, an affiliate of its financial backer Sycamore Partners, changed shipping terms to cash on demand as opposed to on credit. The two sides reached a temporary truce, but Aeropostale or creditors may have incentive to pursue an equitable subordination of Sycamore’s claims if the dispute continues.
The podcast features commentary from Debtwire Middle Market Editor Jon Berke, Associate Editor Reshmi Basu, Legal Analyst Joshua Friedman and retail reporter Danielle Randall.
This podcast was recorded on May 10, 2016
Jonathan Berke is currently the editor of the Debtwire North America middle market product. Having started at Debtwire North America at the product’s inception in 2005, he concentrated on casinos, media companies and auto suppliers. He created the middle market product which debuted in April 2012 and along with editing duties, covers healthcare and education companies.
Jonathan Berke is currently the editor of the Debtwire North America middle market product. Having started at Debtwire North America at the product’s inception in 2005, he concentrated on casinos, media companies and auto suppliers. He created the middle market product which debuted in April 2012 and along with editing duties, covers healthcare and education companies.
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