Claire’s reportedly strikes a deal in bankruptcy battle
A bankrupt tween/teen jewelry and accessories retailer has come to a truce with one of its creditors.
After several hours of negotiations on Tuesday morning, Claire’s struck a deal with Oaktree Capital Management LP and second-lien creditors that will increase their cash recovery rate from 14.6% to 18%, or from about $32.4 million to roughly $41.8 million, according to Law 360.
In addition, the creditors have the opportunity for up to a total 25% recovery, or about $16.3 million more, if certain earnings thresholds are met in 2019 and 2020.
Claire’s filed for Chapter 11 protection in March.
According to the report, Oaktree Capital championed the fight against Claire’s in hopes of recovering more in the settlement. The firm, holding $159 million in second-lien notes and another $1 million in first-lien debt, initially stood to recover from 0.003% to 3.5% of its claim.
The issue was resolved hours before the companies were due in a U.S. Bankruptcy Court hearing on Sept. 18.
To read more, click here.
After several hours of negotiations on Tuesday morning, Claire’s struck a deal with Oaktree Capital Management LP and second-lien creditors that will increase their cash recovery rate from 14.6% to 18%, or from about $32.4 million to roughly $41.8 million, according to Law 360.
In addition, the creditors have the opportunity for up to a total 25% recovery, or about $16.3 million more, if certain earnings thresholds are met in 2019 and 2020.
Claire’s filed for Chapter 11 protection in March.
According to the report, Oaktree Capital championed the fight against Claire’s in hopes of recovering more in the settlement. The firm, holding $159 million in second-lien notes and another $1 million in first-lien debt, initially stood to recover from 0.003% to 3.5% of its claim.
The issue was resolved hours before the companies were due in a U.S. Bankruptcy Court hearing on Sept. 18.
To read more, click here.