Aeropostale Sues Its Main Creditor, Claiming Loan Terms Intentionally Led To Bankruptcy
Aeropostale is getting ready to auction its assets, but perhaps not to Sycamore Partners—the failed teen retailer just filed a lawsuit to prevent Sycamore from purchasing its assets.
Aeropostale maintains that Sycamore’s $150M loan provided in 2014 was made to destroy it, Reuters reports. Specifically, Aeropostale claims the loan came with intentionally burdensome terms that directly led to its bankruptcy and says its attorneys will try to limit Sycamore’s recovery of its loan while limiting the money it can bid on the retailer’s assets.
Aeropostale hopes to find a lead bidder by Aug. 15, and maybe even hold an auction on Aug. 22 if there is enough competitive interest in its assets. While Sycamore hasn’t officially commented on the lawsuit, sources told Reuters there’s no evidence of wrongdoing and suggested the firm may file its own claims. [Reuters]