<\/p>\n
\n\tSaks Global\u2019s vendors have long had pointed questions for Richard Baker, former chief executive officer and chairman of the retailer.\u00a0<\/p>\n
\n\tBut while they were looking for information on their past-due invoices, the committee representing unsecured creditors in the company\u2019s bankruptcy now has its own, much more in-depth questions \u2014 and is looking to compel Baker to answer.\u00a0<\/p>\n
\n\tIn filings to the court, the committee made what is known as a \u201cRule 2004 Request\u201d that Baker produce a long list of documents pertaining to his time at Saks Global, including his correspondence with former CEO Mark Metrick, including documents tied to the Neiman Marcus deal that loaded up the company with debt and more. \u00a0<\/p>\n
\n\tRule 2004 can facilitate a deep dive into a company and help creditors uncover assets that they can then lay claim to. While the committee represents all unsecured creditors, its members are drawn from some of the biggest players in fashion that were owed money by Saks Global, including Amazon, Chanel Inc., LVMH Mo\u00ebt Hennessy Louis Vuitton and Ermenegildo Zegna.\u00a0<\/p>\n
\n\tIn the filing, the creditor committee cited the rule and said, \u201cRichard A. Baker is commanded to produce the documents and electronic information\u201d and provided a 13-point list of documents required no later than April 23.\u00a0<\/p>\n
\n\tAmong them are:\u00a0<\/p>\n
Documents sufficient to show all transfers, or any receipt of value, to you or your affiliates from the debtors [Saks Global] including, but not limited to, loans, dividends, distributions or shares.<\/p>\n
All agreements between you or your affiliates on the one hand, and the debtors on the other hand.<\/p>\n
All documents and communications relating to art pieces, jewelry or other tangible property, that you or your affiliates lent, sold or leased to the debtors.<\/p>\n
All documents and communications between you and Marc Metrick relating to the debtors.<\/p>\n
All documents and communications relating to the acquisition of Neiman Marcus Group.<\/p>\n
All documents and communications relating to former Lord & Taylor locations that the debtors leased, paid for or otherwise had any interest in.<\/p>\n
\n\tThe creditors sent a draft of \u201cdiligence requests\u201d to Baker on March 18, but he has so far refused them through his counsel, Rachel Strickland at Ropes & Gray.\u00a0<\/p>\n
\n\tStrickland \u2014 who is also representing Ian Putnam, former CEO of Saks Global Properties & Investments, in a similar request \u2014 did not immediately return a WWD query.\u00a0<\/p>\n
\n\t\u201cThere can be no meaningful dispute that Mr. Baker has responsive information to which the committee is entitled,\u201d the creditors committee argued in the filings. \u201cMr. Baker was a hands-on executive involved in nearly every key transaction the company entered into, including the Neiman acquisition and the LME,\u201d referring to the liability management exercise last summer that reworked the company\u2019s debt.<\/p>\n
\n\tFurther, the creditors said that Saks Global, now led by CEO Geoffroy van Raemdonck, \u201ctook the position that their current personnel are not sufficiently knowledgeable to testify.\u201d\u00a0<\/p>\n
\n\t\u201cWhile the committee does not seek deposition testimony from Mr. Baker at this time, the debtors\u2019 admissions and other related conversations with the debtors\u2019 counsel reflect that Mr. Baker was and remains a source of key diligence that the committee requires. Mr. Baker can no longer delay providing that diligence,\u201d the filing said.<\/p>\n
\n\tDavid Banker, an attorney representing creditors in the case, said Rule 2004 is something of a \u201cfishing exhibition\u201d to find any hidden value in the case \u2014 from assets that were inappropriately transferred outside the company to the right to sue former management.\u00a0<\/p>\n
\n\tHe said Baker has a week to object to the request, which would then put the matter before federal bankruptcy judge Alfredo P\u00e9rez, who would decide just what the former CEO has to disclose.\u00a0<\/p>\n
\n\tBanker said unsecured creditors are not anticipating a \u201csubstantial recovery\u201d given how much is owed to secured lenders in the case.\u00a0<\/p>\n
\n\t\u201cMost people have been sensitized by this time,\u201d he said. \u201cThey realize their general unsecured claim more likely than not is going to be worth very little in a case where [the company] is so underwater. Even if you found $100 million worth of something that was unencumbered \u2014 to the extent that the secured debt is not fully satisfied, they\u2019re going to have a deficiency claim for the difference.\u201d\u00a0<\/p>\n
\n\tBut Banker said the creditors committee could use anything they find to bargain with lenders.<\/p>\n
\n\t\u201cIf you can find a cause of action [to file a lawsuit] that\u2019s real, where the money\u2019s coming from not the lender, but outside the estate, that\u2019s where you can start to negotiate,\u201d he said.\u00a0<\/p>\n
\n\tWhile the current operating company has been moving through the bankruptcy process and has agreed to a business plan for the future with lenders and submitted a barebones plan of reorganization to the court, there are still matters to be decided that are important to vendors.\u00a0<\/p>\n
\n\tFor instance, Banker said any one who Saks Global paid in the 90 days before the January filing could see those payments clawed back by the court, which can also decide to let those payments stand, but hasn\u2019t settled the issue yet.<\/p>\n
\n\t\u201cThat\u2019s a big deal,\u201d he said. \u201cEveryone who received payments within 90 days is still under risk.\u201d\u00a0<\/p>\n
#Saks #Global #Creditors #Push #ExCEO #Richard #Baker #Documents<\/p>\n","protected":false},"excerpt":{"rendered":"
Saks Global\u2019s vendors have long had pointed questions for Richard Baker, former chief executive officer and chairman of the retailer.\u00a0 But while they were looking for information on their past-due… <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[242],"tags":[],"class_list":["post-983","post","type-post","status-publish","format-standard","hentry","category-editors-pick"],"_links":{"self":[{"href":"https:\/\/stock789.top\/index.php?rest_route=\/wp\/v2\/posts\/983","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stock789.top\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stock789.top\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stock789.top\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stock789.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=983"}],"version-history":[{"count":0,"href":"https:\/\/stock789.top\/index.php?rest_route=\/wp\/v2\/posts\/983\/revisions"}],"wp:attachment":[{"href":"https:\/\/stock789.top\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=983"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stock789.top\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=983"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stock789.top\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=983"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}