Unable to find a merger partner or obtain a financing proposal, the seller of apparel, accessories and footwear has already entered into an agreement to start selling off its assets.
UMB Bank is alleging that the company has robbed Caesars Entertainment Operating Co. of more than $4 billion in value.
The denim apparel maker is in default on its debt for failing to comply with the Ebitda covenant on its term loan.
Sources believe the enterprise IT software solutions company will now swap all of its second-lien debt into equity.
Sources said lenders led by private equity firms Littlejohn & Co. and New Mountain Capital will swap debt for equity and provide as much as $43 million in post-petition financing.
The hedge fund is making a $120 million investment to help the electronics retailer restructure debt, achieve liquidity for holiday season.
Distributions by private equity firms to limited partners reached record levels last year.
The cupcake retailer will kick off a scheduled Aug. 21 auction with a $6.64 million credit bid from Lemonis Fischer Acquisition.
Crumbs Bake Shop Inc. is set to go to auction on Aug. 21, if competing bids are received by Aug. 19.
Florida hospital needs to complete transaction with Hospital Corp. of America to avoid sour fate, analyst warns.