Tuesday Morning committee objects to cash collateral motion

By Sarah Lizee

Olympia, Wash., June 13 – Tuesday Morning, Inc.’s official committee of unsecured creditors objected to the company’s most recent motion to access cash collateral, according to documents filed Tuesday with the U.S. Bankruptcy Court for the Northern District of Texas.

The committee said that while it doesn’t oppose the debtors continued use of cash collateral in general, it does object to any use of cash collateral conditioned on paying the claims held by the remaining secured creditors until they are allowed, paying Piper Sandler & Co. its fees and expenses prior to approval of its fee application, and modifying the court’s final debtor-in-possession financing order, under which the debtors were authorized and directed to use the proceeds of a sale of their assets for certain expenses negotiated by the committee.

The committee said it wasn’t included in the negotiations regarding the proposed final cash collateral budget.

The group said it would support the use of cash collateral and the final wind-down budget in a modified form.

Tuesday Morning is a discount off-price retailer based in Dallas. The company began its second Chapter 11 bankruptcy case on Feb. 14 under case number 23-90001. The previous case started on May 27, 2020 under case number 20-31476. The company exited that round of bankruptcy on Dec. 31, 2020.

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