Pursuits
Aeropostale’s Sycamore Rift Goes to Trial as Vote Proceeds
- Teen retailer accuses Sycamore Partners of ‘loan to own’ plan
- Judge says creditors should learn auction results before vote
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A judge said that teen clothing chain Aeropostale Inc. can ask creditors to vote on its reorganization plan while also gearing up for a trial over whether a key creditor drove the company into bankruptcy to snap it up on the cheap.
U.S. Bankruptcy Judge Sean Lane in Manhattan said Monday that he’s “inclined to approve” the company’s disclosure statement, which explains how the plan would work, so creditors can vote on whether to approve it. After criticizing the plan’s lack of information about how much some creditors, such as mall landlords, stand to recover, the judge said the timeline should be changed so they can find out the results of an Aug. 22 asset auction before voting.