Private Equity Gets Pushback on J Crew Style Loopholes (1)

In 2025’s go-go leveraged debt markets, everything is up for negotiation, but a trio of investor protections are proving to be lines that lenders won’t cross.

The safeguards are designed to block aggressive moves now known simply by the names of the companies that first deployed them - J Crew, Serta and Chewy - and make it harder to push through debt restructurings that strip lenders of claims to assets. Attempts to secure funding without them were rebuffed recently by credit providers in at least three cases involving buyout firms.

The pushback is a marked contrast to other loans over ...