Good news for Neiman Marcus. The US retailer considers exiting Chapter 11 before the end of September. The Bankruptcy Court in Houston (Texas) approved the restructuring plan that was presented.
Moreover, Dan Kamensky “sworn enemy” of Neiman Marcus (who has often started legal proceedings against the retailer), has been accused of fraud, extortion and obstruction of justice by the federal government and has been arrested.
Good news for Neiman Marcus
Neiman Marcus presented its Chapter 11 application last May, but now expects to be out of it by the end of September, with “the full support of creditors and new stockholders”.
“This is an important milestone – says the CEO Geoffroy van Raemdonck -, an auspicious day for the future of our company, because it sets the basis of our rebirth. I remain inspired by the opportunity of satisfying our clients online, at home or inside the store. Meanwhile, we continue our journey to become the most important luxury platform around”.
Based on the approved plan, the company will continue its activities by cutting over 4 billion USD of debt and 200 million of passive interests.
Once out of Chapter 11, some institutional investors will supply a loan of 750 million USD to refinance the debt and provide much needed liquidity for the business. Additionally, the retailer will receive another 900 million USD from Bank of America and other banks for business operations.