A group of lenders to Ascena Retail Group Inc., owner of the Ann Taylor and Lane Bryant clothing chains, is objecting to the company’s plan for a rescue financing package to see it through bankruptcy, Bloomberg News reported. The group is working with law firm King & Spalding as it resists a debt proposal put forward by another set of term loan holders, said the people, who asked not to be identified discussing a private matter. The objecting group includes Z Capital Credit Partners, Marathon Asset Management and Man GLG, the people said. It’s the latest in a series of creditor brawls that have broken out as the pandemic triggers a wave of bankruptcies. Rising corporate distress is pitting beleaguered companies, their sponsors and lenders against each other in fights many say are uglier, dirtier and more vicious than ever before. In the case of Ascena, the objection relates to the debtor-in-possession loan proposed as part of a restructuring support agreement when the company filed for bankruptcy in July. The RSA had the support of 68 percent of the term loan lenders and the DIP includes $150 million of new money, though creditors had to hold at least $20 million to be part of the group.
