Payless Sponsors Kick in $20 Million to Settle Claims
Unsecured creditors will now collect $32,316,000 from a $20 million payment from Golden Gate Capital and Blum Capital and the rest from the estate of Payless in a settlement which will give the two P.E. firms a complete release from all other claims regarding their two dividend payments totaling $350 million plus fees totaling another $50 million or so from the bankrupt shoe retailer. These payments came a few years after buying the chain and loading it with debt to make these payments possible. Golden Gate and Blum continue to deny they did anything improper in making the dividend payments.
The ... Log in to view full article.