Heavily indebted retailers J. Crew Group Inc. and Claire’s Stores Inc. are delving into their loan agreements to find creative ways to raise or reconfigure their debt. And creditors, who often have the most to lose, may not be able to stop them.
the case of preppy clothing maker J. Crew. The New York-based company is
said to be seeking to take advantage of a clause in its loan agreement
allowing it to shift its brand name, the crown jewel of its intellectual
property, to an unrestricted entity in the Cayman Islands. By doing
this, it may now be possible for J. Crew to borrow against the assets
and use the proceeds to buy back a portion of its roughly $2 billion in
debt at a discount.. . . more