Aurelius Capital Management, a distressed-debt hedge fund that made successful bets against Puerto Rico and Argentina, has a new target: the struggling luxury retailer Neiman Marcus, WSJ Pro Bankruptcy reported. The hedge fund, which is run by bankruptcy lawyer Mark Brodsky, pushed Neiman Marcus Group Ltd. to add language to its bond documents that would make it easier to profit on bets against the retailer, especially if the company defaults or files for bankruptcy. Neiman Marcus, which has more than $5 billion in debt from two leveraged buyouts, has been in talks for months to convince holders of its bonds and loans to push out repayments to 2023 and 2024. The negotiations gave Aurelius, a Neiman bondholder, an opening to make its demand.
