Claire’s Stores Inc. entered bankruptcy Monday with a reorganization plan already blessed by private-equity owner Apollo Global Management and first-lien debt holder Elliott Management Corp., but at least one noteholder — Oaktree Capital Management LP — is already objecting to the proposed deal, WSJ Pro Bankruptcy reported. In a court filing and at the teen accessories retailer’s debut bankruptcy hearing Tuesday, Los Angeles-based debt investor Oaktree said holders of $240 million in second-lien notes were unfairly shut out of the negotiations, which could pave the way for first-lien creditors to take control of the company when it exits chapter 11. Oaktree owns 72 percent of the second-lien debt and said it will walk away with nothing in the proposed reorganization. Claire’s went private in 2007 in a $3.1 billion leveraged buyout led by Apollo. Apollo, which owns 98 percent of the equity and 28 percent of three different loans, is on board with the restructuring, which is aimed at cutting $1.9 billion in debt from the retailer’s balance sheet.
