Objections from dissenting creditors are threatening to delay Neiman Marcus’s bankruptcy restructuring after the group said an acceptable plan must preserve the right of minority stakeholders to pursue legal claims related to a 2018 asset transfer, Bloomberg News reported. The retailer asked U.S. Bankruptcy Judge David Jones to postpone a hearing on certain details of its plan to July 21 as it looks to address concerns from lower-ranking creditors. Neiman filed for chapter 11 protection on May 7 after striking an agreement to let senior creditors take control of the chain. But lower-ranking creditors say the court must first allow a full investigation into a controversial asset transfer that shifted value out of investors’ reach and lowered recovery values. The company’s plan, however, includes broad liability releases that would protect previous owners and directors, including Neiman’s private equity owners Ares Management Corp. and the Canadian Pension Plan Investment Board, from future claims. The lower-ranking creditors drew up their own restructuring plan, which differs from Neiman’s namely in its treatment of the future liabilities, and asked the court for permission to formally submit it as an alternative. The rescheduled hearing, which was originally set to take place on Friday, will include a response to that request, according to an agenda filed with the court.
