Robbie Westermann and Britt Falabella have been highlighted in a recent Law360 article for their role as local counsel to the Official Committee of Unsecured Creditors in the J.Crew Chapter 11 cases. As reported in the article, on August 3, among other challenges, the Creditors Committee challenged the liens of certain secured lenders, arguing that up to $32 million of the debtors’ assets are not encumbered by the liens and should be available for recovery by the unsecured creditors. The Creditors Committee is seeking standing to contest the liens and bring other claims on behalf of the bankruptcy estate since J. Crew waived its challenge and other rights as part of a post-petition financing arrangement. The Creditors Committee is also asserting that J. Crew is intentionally undervaluing the company and its assets in an effort to leave the unsecured creditors “out of the money” and to impact the upcoming voting on the debtors’ proposed plan, which is set for a contested confirmation hearing on August 25.
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Stephanie A. Hood