Tuesday Morning creditors committee objects to cash collateral motion

By Sarah Lizee

Olympia, Wash., May 17 – Tuesday Morning, Inc.’s emergency motion seeking authorization to use cash collateral on a limited basis drew a limited objection from the official committee of unsecured creditors, according to documents filed Wednesday with the U.S. Bankruptcy Court for the Northern District of Texas.

As background, the company is seeking continued access to cash collateral to satisfy obligations under a sale order.

The committee said that while it does not oppose that in general, it does oppose any use of cash collateral conditioned on paying any claims held by the remaining secured creditors until they are deemed valid and allowed secured claims.

The committee also opposes modifying the court’s final debtor-in-possession order, under which the debtors were authorized and directed to use the proceeds of a sale of their assets for certain negotiated expenses.

Tuesday Morning is a discount off-price retailer based in Dallas. The company began its second Chapter 11 bankruptcy case on Feb. 14 under case number 23-90001. The previous case started on May 27, 2020 under case number 20-31476. The company exited that round of bankruptcy on Dec. 31, 2020.

© 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.