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Nine West Deal With Sycamore Sets Up Creditor Court Battle

  • Retailer says $105 million deal should resolve buyout claims
  • Unsecured creditor panel may seek more by suing Sycamore
Updated on

A deal to bring Nine West Holdings Inc. out of bankruptcy is likely to face opposition from unsecured creditors who are seeking to file a $1 billion lawsuit against Sycamore Partners LLC for its role in the retailer’s 2014 leveraged buyout, according to a person familiar with the matter.

Sycamore and KKR & Co. have proposed paying $105 million to those creditors to settle allegations the buyout left Nine West unable to pay its debt. The settlement is part of a Nine West reorganization plan the retailer filed Wednesday, one day after the official committee of unsecured creditors reiterated its intention to sue Sycamore.