Merger talks between luxury department store companies hit a snag
Is Neiman Marcus about to be involved in a lawsuit as opposed to a merger?
Merger discussions between Neiman Marcus and Saks Fifth Avenue have hit a roadblock as Neiman Marcus faces a possible lawsuit from its term loan lenders and bondholders, reported The New York Post. The lawsuit involves Neiman Marcus’ decision to move three of its stores into a subsidiary that protects them from creditors in the event of a bankruptcy, according to the report. The stores in question are located in San Antonio and Longview, Texas, and McLean, Virginia.
“Neiman Marcus made moves that they thought were legal, but the lenders could seek a court ruling finding that Neiman breached its contract,” said Jude Gorman, general counsel at Reorg Research, which focuses on distressed debt, in the Post report.
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Merger discussions between Neiman Marcus and Saks Fifth Avenue have hit a roadblock as Neiman Marcus faces a possible lawsuit from its term loan lenders and bondholders, reported The New York Post. The lawsuit involves Neiman Marcus’ decision to move three of its stores into a subsidiary that protects them from creditors in the event of a bankruptcy, according to the report. The stores in question are located in San Antonio and Longview, Texas, and McLean, Virginia.
“Neiman Marcus made moves that they thought were legal, but the lenders could seek a court ruling finding that Neiman breached its contract,” said Jude Gorman, general counsel at Reorg Research, which focuses on distressed debt, in the Post report.
Click here to read more.