A battle for control of Bluestem Brands Inc. played out in bankruptcy court as a Delaware judge granted $74 million in financing and other first-day relief after the online and catalog retailer’s Chapter 11 filing.
Bluestem Brands’ lenders used proxy rights to replace directors and gain a board majority in the weeks leading up to the bankruptcy filing, the parent company Bluestem Group Inc. said at a court hearing Tuesday.
BGI, which indirectly owns 100 percent of Bluestem Brands, is not part of Monday’s Chapter 11 filing in the U.S. Bankruptcy Court for the District of Delaware.
“We are concerned ...
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