Tailored Brands Creditors Get Two Weeks to Probe Rescue Loan

Silver Point Capital-led rescue financing for Tailored Brands Inc. has triggered a legal skirmish over the treatment of junior creditors getting squeezed by the $75 million deal.

The fresh cash may keep the retailer from yet another Chapter 11 filing, but it will also nearly wipe out the equity stake given to unsecured creditors as repayment in the company’s bankruptcy last year, court papers show. The financing -- and a proposed settlement that followed -- has some creditors up in arms, saying the company ran afoul of a court order when arranging the deal.

U.S. Bankruptcy Judge ...