Re:Neiman Marcus files for bankruptcy
by hnmullany on Thursday May 07, 2020 @04:11PM
(#23107674)
That's not correct - creditors are usually banks for secured term debt or bondholders. The interest rates are not absurd. In this case, the bondholders are suing the private equity fund for stripping the asset. The bond in question looks like it had about a 10% interest rate
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The lead bondholder is Marble Ridge Capital - a fund that specializes in distressed asset investing.
To be fair a 10% interest rate for debt sold in the last 2-3 years was kind of absurd, even for many junk bonds (of course I'm talking about the pre-virus situation).