Neiman Marcus draws strong criticism from bankruptcy judge

[TexasTowelie]

While Neiman Marcus manages through a pandemic and the damage to stores from the weekend’s protests, the Dallas-based retailer’s bankruptcy has hit a rough spot with the judge overseeing its reorganization.

U.S. Bankruptcy Judge David Jones has ordered the official creditors committee to investigate the transfer in 2018 of the company’s Germany-based Mytheresa luxury business to Neiman Marcus’ former shareholders, Ares Management and the Canada Pension Plan Investment Board. Ares and the pension fund led the $6 billion leveraged buyout in 2013 that left Neiman Marcus with unsustainable debt.

After a six-hour hearing on Friday, Jones questioned whether two independent Neiman Marcus directors who were appointed in April were qualified to investigate the Mytheresa transfer. Neiman Marcus attorneys had presented them to the court as “disinterested managers” who would investigate the transfer.

Neiman Marcus bondholder Marble Ridge had filed a motion in the bankruptcy to have an independent examiner look into the transfer. The bondholder’s attorney presented arguments that those board members were not truly independent and testimony revealed so, according to the judge.

Read more: https://www.dallasnews.com/business/retail/2020/06/01/neiman-marcus-draws-strong-criticism-from-bankruptcy-judge/

[pansypoo53219]

1. wall street shenanigans.

[3Hotdogs]

2. How is this different from the shit that Bain Capital pulled... pulling out assets and

leaving companies with unsustainable debt?

[JHB]

4. This one has a judge deciding to examine it closely.

[Dios Mio]

3. Amazing what lurks under the rocks

when forced to look under them. Big bizz strikes again. They are just so clever.

[Ford_Prefect]

5. Bait and Switch, Inc. in hand-tooled leather with diamond studs.