The bankrupt retailer’s unsecured creditors believe the company is seriously underestimating the value of the business, alleging it is doing so in order to shortchange them on recoveries.The unofficial creditors’ committee in the case argues that its experts had conducted an “extensive investigation” of J. Crew’s finances and assets, and found that the company’s enterprise value was roughly $2.94 billion. That estimate places a significantly higher value on the business than J.
The creditors’ committee is also seeking to file its expert reports containing their valuation estimates under seal, as it hashes out with J. Crew which of the information contained in the reports needs to be kept confidential, and whether redacted versions of the reports can later be filed publicly.
J. Crew’s reorganization plan has proposed a $1.65 billion debt-for-equity swap, and $400 million in “new money commitment backstopped by their plan sponsors,” according to court documents. The creditors’ committee’s arguments so far indicate it will be filing formal objections to the plan. The deadline to file those objections is Aug. 17.
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