UPDATE 1-Lenders oppose Emerisque bid for Hartmarx
NEW YORK, May 29 (Reuters) - Wells Fargo & Co (WFC.N: Quote, Profile, Research), leader of a group of banks that have provided credit to bankrupt men's clothing maker Hartmarx Corp (HTMXQ.PK: Quote, Profile, Research), said on Friday it opposes the acquisition of Hartmarx by private equity firm Emerisque.
The bank said the lenders believe Emerisque's bid does not maximize the value of Hartmarx's assets or guarantee continued operation of the company's current business.
Chicago-based Hartmarx, which has made suits for U.S. President Barack Obama, filed for Chapter 11 bankruptcy protection earlier this year.
Last week it agreed to sell its assets to the London-based firm for $70.5 million in cash and a junior secured note with a face value of $15 million.
Hartmarx's lenders said Emerisque's offer requires selling significant pieces of Hartmarx soon after buying it, risking jobs at several U.S. factories and distribution centers.
Emerisque could not immediately be reached. (Reporting by Martinne Geller; editing by Gunna Dickson)
© Thomson Reuters 2009 All rights reserved
India Investment Summit 2009
Top executives and bankers discuss their own plans and the broader opportunities and challenges for India. Full Coverage
GLOBAL RECOVERY
Global economy in holding pattern - IMF
The global economy is in a holding pattern and vulnerable to more upheaval, the head of the IMF said, adding a lasting recovery will depend on policymakers taking the proper steps in the coming months. Full Article
India
US
UK
