Tuesday Morning Bankruptcy

A credit opportunity fund that provided pre-petition bridge and post-petition DIP financing to Tuesday Morning, Inc., a Chapter 11 debtor, retained Brattle for expert analysis and financial advisory services in a dispute over the distribution of proceeds from the sale of the debtor’s assets. The dispute arose among secured creditors with shared liens on collateral and competing priorities. Brattle’s expert mandate was to value collateral, including inventory, furniture fixtures and equipment, and intellectual property, to assess competing lenders’ adequate protection claims and support the client fund’s asserted lien priority to maximize its recovery. The firm’s financial advisory services included evaluating and negotiating the use of cash collateral, interacting with financial advisors for other stakeholders, and assisting counsel with mediation, settlement negotiations, and case strategy. Brattle filed two expert reports and drafted a rebuttal report on valuation issues. The lenders, debtors, and creditors’ committee reached a global settlement resolving the dispute and providing a path for the completion of the bankruptcy cases.