Creditors Balk At Steve & Barry's Payout

Law360, New York (August 18, 2008, 12:00 AM EDT) -- Creditors of bankrupt discount clothing outlet Steve & Barry's LLC have asked the judge overseeing the company's bankruptcy to stop a $5 million payment to the company's founders.

The creditors asked Judge Allan L. Groper of U.S. Bankruptcy Court for the Southern District of New York to consider the payment to Steve & Barry's founders Steven Shore and Barry Prevor equity rather than a secured loan.

The creditors also asked the judge to put the money into an interest-bearing escrow account until the creditors and the...
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