MoFo Advises Official Committee of Unsecured Creditors on Confirmation of Saks Global’s Chapter 11 Plan

NEW YORK – Morrison Foerster (“MoFo”) advised the Official Committee of Unsecured Creditors (the “Committee”) on the Chapter 11 cases of Saks Global Enterprises LLC and its affiliated debtors (collectively, the “Debtors”) in connection with the successful confirmation of the Debtors’ Chapter 11 plan of reorganization by the U.S. Bankruptcy Court for the Southern District of Texas.  

MoFo advised the Committee throughout the Chapter 11 proceedings, including with respect to the Debtors’ debtor-in-possession financing, critical vendor issues, negotiations surrounding the plan of reorganization, and a comprehensive global settlement among key stakeholder groups that ultimately formed the foundation of the confirmed plan. MoFo also assisted the Committee in conducting an extensive investigation into potential estate claims and causes of action, which provided the foundation for the global settlement that facilitates a potential material recovery for unsecured creditors.

During the Chapter 11 cases, the Committee secured commitments from the Debtors and secured lender to ensure payment of more than $611 million in prepetition claims to vendors and service providers. Under the confirmed Chapter 11 plan, the Debtors have assumed all of their pension and collective bargaining agreements. In addition, the confirmed plan establishes a funded Litigation Trust on the plan’s effective date. The Litigation Trust will pursue litigation on behalf of the Debtors’ estates and distribute the proceeds to creditors.

The confirmed plan reduces the Debtors’ balance sheet obligations by approximately $2.3 billion and provides significant new capital through exit financing, positioning the storied retailer to continue operations while preserving meaningful recovery opportunities for unsecured creditors.  

The MoFo team advising the Committee was led by Lorenzo Marinuzzi, Doug Mannal, Theresa Foudy, Benjamin Butterfield, Bryan Kotliar, Raff Ferraioli, and Ilayna Guevrekian.