Brookstone's Unsecured Creditors Blast $96M DIP Loan

Law360, Wilmington (April 22, 2014, 10:22 PM EDT) -- Unsecured creditors of bankrupt Brookstone Holdings Corp. objected in Delaware bankruptcy court Monday to the specialty retailer's proposed $96.3 million debtor-in-possession facility, contending that the package benefits the lenders while burdening the company with fees and expenses.

The official committee of unsecured creditors took issue with a $36.3 million tranche of the DIP facility furnished by a group of Brookstone's second-lien bondholders, arguing that it allows lenders to roll up $30 million of their prepetition notes in exchange for providing a disproportionately small amount of new money.

In an objection filed in Delaware bankruptcy court, the committee said it recognizes that...

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!


Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!