Bankrupt U.S. teen retailer Aeropostale filed a motion against its lender, private-equity firm Sycamore Partners, in bankruptcy court, accusing it of plotting a "loan-to-own” scheme to push the chain into bankruptcy, Reuters reported on Saturday. Aeropostale asked a bankruptcy court judge to bar Sycamore from using the $150 million it is owed as credit to bid on the company, which is up for sale in a court-supervised auction. Aeropostale also wants the judge to reduce how much Sycamore would be repaid on its loan. The company continues to believe that Sycamore “engaged in significant bad acts.” Aeropostale says that Sycamore, through its apparel sourcing company, MGF Sourcing, imposed "onerous" payment terms on the retailer in attempt to hurt its cash position, causing defaults under other credit agreements leading to bankruptcy. Aeropostale had to make merchandise purchases through MGF as a condition of the loan Sycamore affiliates made to the retailer. The retailer also claims that Sycamore traded public Aeropostale shares while it had nonpublic information on the company. There will be a hearing on Aeropostale’s claims against Sycamore in August. Aeropostale’s claims against Sycamore wrap up weeks of an investigation by the company into the private-equity firm.
