Tuesday Morning term lenders object to cash collateral motion

By Sarah Lizee

Olympia, Wash., June 14 – Tuesday Morning, Inc. term loan lenders Tensile Capital Management, LP, CEOF Holdings LP and Corbin Opportunity Fund, LP filed a limited objection to the company’s most recent motion to access cash collateral, according to documents filed Wednesday with the U.S. Bankruptcy Court for the Northern District of Texas.

The cash collateral budget includes payments to prepetition first-in, last-out lenders in the amount of $9.2 million, a Hilco transaction fee payment to Piper Sandler of $2.5 million, and a payment to a professional fee escrow account of $2 million.

“These items should not be included in the budget if they are subject to future approval by the court,” the group said in its objection.

The term loan lenders also said they don’t agree that their rights are adequately protected but they will consent to the requested limited use of cash collateral, if modified in line with their objection.

As previously reported, the official committee of unsecured creditors has also filed an objection to the motion, also taking issue with the above payments.

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.