Matalan Finance Seeks U.S. Chapter 15 Bankruptcy Protection (1)

Matalan Finance filed for Chapter 15 court protection Wednesday in New York as the U.K. Matalan retail chain seeks to buttress its balance sheet in the aftermath of pandemic-inflicted closures.

• Previously: The retailer said it will seek “certain interim relief” under Chapter 15 and recognition for its debt restructuring in the U.K.
  • Chapter 15 of U.S. bankruptcy law shields foreign companies from lawsuits by U.S. creditors while they reorganize in another country
• The retailer used a U.K. court procedure known as a scheme of arrangement; lower-ranking bondholders agreed to receive more debt as interest instead of cash
  • NOTE: Matalan put ...