The Official Committee of Unsecured Creditors appointed in the jointly administered bankruptcy cases of Neiman Marcus Group LTD LLC and its debtor affiliates objects to the adequacy of the Disclosure Statement for the Debtors’ Joint Plan of Reorganization.
The Committee claims that the Disclosure Statement does not contain information sufficient to allow unsecured creditors to make an informed decision whether to accept or reject the Plan and, in some instances, contains incomplete or misleading information.
The Committee points out that the discussion of the Designation, the Distribution, and the Recapitalization Transactions in the Disclosure Statement is inadequate by failing to disclose potential claims that exist against the Litigation Targets or the value of such claims.
The Committee asserts that notwithstanding the potential causes of action arising from the Designation, the Distribution, and the Recapitalization Transactions, the Plan contains broad Debtor and third party releases for the benefit of the Released Parties, including the Litigation Targets.
The Committee further asserts that nothing in the Disclosure Statement identifies exactly what Causes of Action are being released, the value of such Causes of Action, the parties against whom such Causes of Action may be asserted, the consideration each such person is providing in exchange for the releases, or how each such release is facilitating the restructuring of the Debtors or otherwise benefiting the estates.
A full-text copy of the Committee’s objection to the Disclosure Statement dated July 10, 2020, is available at https://tinyurl.com/ycyrdseh from PacerMonitor.com at no charge.
Lead Counsel for the Official Committee of Unsecured Creditors:
PACHULSKI STANG ZIEHL & JONES LLP
Richard M. Pachulski, Esq.
Jeffrey N. Pomerantz, Esq.
Alan J. Kornfeld, Esq.
Maxim B. Litvak, Esq.
Steven W. Golden, Esq.
10100 Santa Monica Blvd., 13th Floor
Los Angeles, CA 90067-4100
Telephone: (310) 227-6910
Co-Counsel for the Official Committee of Unsecureds:
Michael D. Warner, Esq.
Benjamin L. Wallen, Esq.
COLE SCHOTZ P.C.
301 Commerce Street, Suite 1700
Fort Worth, TX 76102
Telephone: (817) 810-5250
Facsimile: (817) 810-5255
About Neiman Marcus Group
Neiman Marcus Group LTD, LLC is a luxury omni-channel retailer conducting store and online operations principally under the Neiman Marcus, Bergdorf Goodman, and Last Call brand names. It also operates the Horchow e-commerce website offering luxury home furnishings and accessories. Since opening in 1907 with just one store in Dallas, Neiman Marcus and its affiliates have strategically grown to 67 stores across the United States.
Neiman Marcus Group LTD and its affiliates sought protection under Chapter 11 of the Bankruptcy Code (Bankr. S.D. Tex. Lead Case No. 20-32519) on May 7, 2020. At the time of the filing, the Debtors were each estimated to have assets of between $1 billion and $10 billion and liabilities of the same range.
Judge David R. Jones oversees the cases.
The Debtors tapped Kirkland & Ellis, LLP and Kirkland & Ellis International, LLP as bankruptcy counsel; Jackson Walker, LLP as local counsel; Berkeley Research Group, LLC as restructuring advisor; Lazard Freres & Co. LLC as investment banker; and Stretto as claims, noticing and solicitation agent.