A pricey contest over Nine West Inc. continues in a Manhattan bankruptcy court Tuesday, as the apparel maker attempts to persuade a judge to shield its private-equity owner, Sycamore Partners LP, from lawsuits, the WSJ Pro Bankruptcy reported. Professional fee bills in the bankruptcy could top $140 million, due to months of strife, lawyers said on Monday during opening arguments over Nine West’s chapter 11 exit plan. The trial continued yesterday before Judge Shelley Chapman, who is being asked to approve the plan, and the settlement with Sycamore, over the protests of bondholders who are owed $700 million. Sycamore has denied allegations it drained the apparel maker of value, but has, along with minority owner KKR Credit Advisors (US) LLC, agreed to pay $115 million to quiet the claims. Nine West says the settlement offer from Sycamore is a good one, and notes that senior creditors as well as the official committee of unsecured creditors have agreed to the deal. Bondholders, however, are balking at the settlement and opposing confirmation of Nine West’s bankruptcy exit plan. They contend that the Sycamore settlement is priced too low and Nine West is spending heavily in a court fight to protect its owner.
