( Reuters) – A financier group that consists of financial investment company Mudrick Capital Management LP and Daniel Loeb’s hedge fund Third Point LLC plans to challenge a $600 million financing package that Neiman Marcus Group has actually lined up for its looming insolvency, and will press the U.S. department store operator to sell itself, people acquainted with the matter stated on Sunday.
SUBMIT IMAGE: The Neiman Marcus store is seen throughout the break out of the coronavirus illness (COVID-19) in New York City, U.S., April 19,2020 REUTERS/Jeenah Moon
Neiman Marcus is preparing to look for bankruptcy protection in a Dallas federal court as soon as Monday, the sources stated. The debt-laden business’s sales all but evaporated after the coronavirus break out forced it to briefly shut all 43 of its Neiman Marcus places, approximately two dozen Last Call stores and its two Bergdorf Goodman shops in New york city. The place and timing of the personal bankruptcy filing had actually not been completed since Sunday, the sources cautioned.
Neiman Marcus declined to comment.
Mudrick sent a $700 million proposal for so-called debtor-in-possession (DIP) financing to Neiman Marcus in recent days, the sources said. In addition to Third Point, hedge fund Fir Tree Partners is likewise likely to be part of the group proposing the financing, they stated.
Neiman Marcus plans to instead utilize a $600 million loan it invested weeks working out with lenders that include Pacific Financial investment Management Co, Davidson Kempner Capital Management LP and TPG’s Sixth Street Partners, the sources stated.
Neiman Marcus over the weekend was close to finishing settlements for that