Nine West Holdings Inc. reached a deal on Friday that clears a path out of bankruptcy and ends a courtroom contest over grants of legal immunity to private-equity owner Sycamore Partners LP, WSJ Pro Bankruptcy reported. The settlement, announced Friday in a New York bankruptcy court, clears the way for the apparel maker to be taken over by creditors under a chapter 11 plan. It means an improved recovery for bondholders owed more than $700 million that had been blocking confirmation of the plan. Nine West’s term loan lenders will get more than 91 percent of the reorganized company, with junior creditors sharing the rest under the chapter 11 plan. The end of courtroom hostilities translates into more cash for creditors than originally proposed, because of money Nine West won’t have to spend on the court fight.
