Creditor Questions Mervyn's $166M Settlement With PE Firms

Law360, Wilmington (October 19, 2012, 4:30 PM EDT) -- A distressed debt investment firm on Friday objected to the $166 million settlement that fellow Mervyn’s LLC creditors struck with several private equity firms in a suit over a 2004 leveraged buyout, saying it needs proof that the deal is preferable to fighting it out in court.

Two weeks ago, a committee representing Mervyn’s unsecured creditors inked a settlement in Delaware bankruptcy court resolving allegations that Sun Capital Partners Inc., Cerberus Capital Management LP and others left the defunct department store chain insolvent after stripping it...
To view the full article, register now.