Creditors Threaten Suit Following Nine West Deal - Articles

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Posted by: Chelsea Bennett on Oct 19, 2018

An official committee of unsecured creditors seek to file a $1 billion lawsuit against Sycamore Partners LLC for its role in the Nine West 2014 leveraged buyout, Bloomberg reports. They claim the buyout left the retailer unable to pay its debt. Following the committee’s reiteration of their intent to sue, a Nine West reorganization plan was filed which included a proposal to pay $105 million to the creditors to settle the allegations. Next month, a U.S. bankruptcy judge will decide if the plan and settlement should be sent to the creditors for a vote.