KB Toys Blasts Creditors' Derivative Claim

Law360, New York (June 11, 2009, 12:00 AM EDT) -- KB Toys Inc. and several former directors of the bankrupt company have objected to an effort by unsecured creditors to obtain standing to pursue a derivative claim in an adversary suit over $95 million owed to the toy retailer’s owner, Prentice Capital Management Inc.

The retailer and five of its former directors, including three affiliated with Prentice, filed objections Wednesday in the U.S. Bankruptcy Court for the District of Delaware, contending that the unsecured creditors committee — which includes Hasboro Inc., Mattel Inc., and affiliates of...
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