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Oaktree Says Claire’s Rush to Leave Bankruptcy Could Hurt Recoveries

Submitted by jhartgen@abi.org on

Oaktree Capital Management LP, which has been an unhappy junior bondholder in the bankruptcy of Claire’s Stores Inc., said Thursday that the teen retailer’s rush to leave chapter 11 runs the risk of leaving a better offer on the table, WSJ Pro Bankruptcy reported. For months Oaktree has said Claire’s continues to favor senior bondholders and private-equity owner Apollo Management Holdings LP at the expense of other parties. In a court filing on Thursday, Oaktree, which holds 72 percent of secured second-lien bonds in the Hoffman Estates, Ill.-based company, lodged numerous objections related to the disclosure statement Claire’s filed last week in U.S. Bankruptcy Court in Wilmington, Del.