| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers S > Headlines for Steve & Barry’s LLC > News item |
Steve & Barry's creditors committee denied approval to examine company insiders
By Jennifer Lanning Drey
Portland, Ore., Oct. 16 - Steve & Barry's LLC's official committee of unsecured creditors' motion for approval to examine company representatives and insiders was denied Thursday by the U.S. Bankruptcy Court for the Southern District of New York, according to Steve & Barry's attorney Shai Waisman.
Waisman said the motion was denied for reasons similar to those included in the company's objection to the motion. In the objection, Steve & Barry's said that the creditors committee request breached a settlement agreement in which it said it would settle all claims and causes of action against the principals.
As previously reported, the committee wanted to examine Steven Shore and Barry Prevor in connection with a $152 million transaction with TA Associates Inc.
The creditors claimed Shore and Prevor received $152 million on account of some notes and a portion of their common equity interests in the company under the October 2006 transaction with TA Associates.
In addition, the committee said the insiders purchased a junior participation interest in a GE revolving credit agreement less than one month before Steve & Barry's bankruptcy filing.
The committee said questions have arisen as to whether the TA transaction left the company solvent and able to pay its debts as they became due.
In addition, the committee said the funds provided by Shore and Prevor through the junior participation were provided less than one month before the company's bankruptcy filing "at the insistence of the debtors' secured lenders."
Steve & Barry's, now known as Stone Barn Manhattan LLC, is a Port Washington, N.Y.-based national apparel and accessories retailer that filed for bankruptcy on July 9. Its Chapter 11 case number is 08-12579.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.