The battle between bankrupt Aeropostale Inc. and Sycamore Partners has grown more heated.
Aeropostale and its junior creditors have come together in an effort to save the chain, but Sycamore isn’t having any part of it. The private equity firm has filed an objection that opposes the retailer’s second amended joint plan of reorganization. Sycamore believes that liquidation is the best option.
“It is time for the only recalcitrant party in these cases, the debtors, to act responsibly and salvage from the wreckage of their misguided bankruptcy strategy as much value as possible for the benefit of, and in consultation with, all of the creditors in these cases, for whom the debtors and their officers are meant to act as fiduciaries,” the filing stated.
The planned auction of the chain has been pushed back to Aug. 29, the Wall Street Journal reported.
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