Payless Creditors Settle on Fraudulent Conveyance Claim
The negotiating session between the unsecured creditors of Payless and the private equity firms that siphoned off a $350 million dividend prior to the bankruptcy filing has been settled but the exact terms of the settlement have not been made public yet. A court hearing Jun. 21 confirmed that the unsecured creditors had agreed to step back from their threatened litigation as a result of the settlement and also moved backward by several days the deadlines for soliciting approval of the plan as lawyers scramble to update the disclosure documents and plan with the terms of the settlement incorporated. The ... Log in to view full article.