United Retail Creditors Challenge Stalking Horse Bid

Law360, New York (March 14, 2012, 6:13 PM EDT) -- Unsecured creditors of women's clothing retailer United Retail Group Inc. on Monday filed an adversary complaint within the company's New York bankruptcy case seeking to block would-be buyer Versa Capital Management LLC's purported $9.5 million secured claim.

The $9.5 million claim was transferred to Versa affiliate Ornatus URG Acquisition LLC from United Retail parent Redcats USA Inc. for credit bidding purposes, allowing Versa to bid on the company's assets using its secured debt.

But the committee of unsecured creditors argues that the $9.5 million is in...
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