A group of lenders to Canadian luxury fashion retailer Ssense are trying to block a deal that would allow its founders to buy the company out of bankruptcy, arguing that liquidation would let them recover more cash.
In court filings this week, the group, led by Bank of Montreal, said it seeks to stop a founder-led buyout of the company’s parent, Atallah Group, and instead wants a judge to authorise an orderly liquidation of the retailer’s assets.
The lender group, which also includes Royal Bank of Canada, JPMorgan Chase & Co., National Bank of Canada and Bank of Nova Scotia, is owed about C$113 million ($81 million) and would recover tens of millions of dollars more if the company’s assets were liquidated, it said in court…