Destination Maternity Creditors Balk At Lender Protections

Law360 (November 8, 2019, 8:19 PM EST) -- The official committee of unsecured creditors in the Chapter 11 case of retailer Destination Maternity objected Friday to the debtor’s use of lenders’ cash collateral, saying the proposed final order provides broad protections to the lenders to the detriment of the unsecured creditors.

In the objection filed Friday in Delaware bankruptcy court, the committee makes clear it is not opposed to Destination Maternity Corp.’s use of its lenders’ cash to help fund its case, but it said certain provisions give the secured lenders inordinate financial protections given their role in the case.

Specifically, the committee said the cash collateral order and...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.


  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS