Creditors Flag Avenue Stores Ch. 11 Funds, Bid Procedures
Law360 (September 11, 2019, 8:02 PM EDT) -- Unsecured creditors in women's plus-size clothing retailer Avenue Stores LLC's Chapter 11 told the Delaware bankruptcy court Wednesday that proposed post-petition financing in the case is set up to benefit prepetition lenders at the expense of other creditors.
In an objection filed in U.S. Bankruptcy Court Judge Laurie Selber Silverstein's court, the official committee of unsecured creditors asserted that although the $12 million debtor-in-possession funding provides enough liquidity to continue closing Avenue's remaining brick-and-mortar stores while a buyer is sought for e-commerce business, it includes "onerous" terms that "advance the interests of the pre-petition secured lenders."
"The proposed financing to be...
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