J. Crew Group Inc.’s debt restructuring can’t go forward because not all lenders agreed to it, and it seals the deal on an improper shift of trademark assets to benefit the retailers’ private equity owners, two holdouts said.
Funds affiliated with Eaton Vance Corp. and Highland Capital Management sued J.Crew and the agent to its $1.57 billion term loan in New York State Supreme Court Thursday. They say the agent, Wilmington Savings Fund Society FSB, needed unanimous consent of lenders for the deal it inked earlier this month; consenting to the restructuring deal and waiving potential lawsuits against J. Crew over its controversial transfer of its trademark assets last year.