Distressed Daily: J. Crew Blockers Appear in Just 17% of Loans

Lender safeguards, dubbed “J. Crew blockers,” aren’t yet in vogue even though borrowers continue to follow the fashion retailer in transferring collateral away from creditors, according to a report from S&P Global Ratings.

• Controversial asset transfers of intellectual property have popped up in a number of situations including J. Crew Group Inc., Neiman Marcus Group Inc. and PetSmart Inc., prompting legal backlash from lenders. The moves have also fed more general concerns about the loosening of protections that once were standard in the leveraged loan market. While more lenders have sought amended or additional language in loan agreements ...