Tuesday Morning bankruptcy judge OKs equity committee formation despite prior denial

Westlaw News

Maria Chutchian

The judge overseeing discount retailer Tuesday Morning’s bankruptcy case has granted a request by equity holders to appoint an official committee to represent their interests in the case, citing new information that has surfaced since he denied their first request in July.

U.S. Bankruptcy Judge Harlin Hale in Dallas wrote in a six-page decision on Friday that because the company appears to be courting several interested buyers, which he believes could result in some form of payouts to equity holders, he would order the appointment of an official equity committee. Tuesday Morning, one of several retailers to seek bankruptcy in May amid the COVID-19 pandemic, will cover the committee’s legal fees, as is customary in Chapter 11 cases.

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