Mervyn's Creditors' $166M Deal With PE Firms Gets OK
Law360, Wilmington (November 2, 2012, 6:32 PM EDT) -- A Delaware bankruptcy judge gave his blessing Friday to a $166 million settlement between Mervyn's LLC creditors and private equity firms over the 2004 leveraged buyout of the department store chain, overruling an objection from a distressed debt investment firm.
U.S. Bankruptcy Judge Kevin Gross cleared the settlement, ending a four-year fight in litigation where unsecured creditors accused Sun Capital Partners Inc., Cerberus Capital Management LP and others of leaving Mervyn's insolvent after stripping it of valuable real estate assets in the $1.26 billion buyout.
“I think it is clearly a fair and reasonable settlement,” Judge Gross said.
United States Debt...
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