Syms Corp. (“Syms”) and Filene’s Basement, LLC, (“Filene’s”) together with 2 associated debtors (the “Debtors”) filed  voluntary petitions under Chapter 11 of the Bankruptcy Code on November 2, 2011  in the Bankruptcy Court for the District of Delaware.  The Honorable Kevin J. Carey has been assigned to the case.  The Debtors have moved to have the cases administratively consolidated under the Filene’s Basement, LLC case (Case No. 11-13511).  However, each of the Debtors has filed its own, separate list of its largest unsecured creditors.   This  initial note provides the list of the 20 largest unsecured creditors for each of Filene’s and Syms.

The Debtors’ Lists of Holders of Largest Unsecured Claims

The Debtors have chosen not to file a consolidate list of largest creditors.  Instead, each of the Debtors has filed a list of the holders of its largest unsecured claims. The list for each of Filenes and Syms  is set forth below.  The information provided by the filing of separate lists is enlightening.

Syms’ largest creditors are heavily populated by trade creditors – 15 out of the 20.  On Filene’s list, 11 of the 20 largest unsecured creditors are landlords and only 7 are trade creditors with 3 of them at the bottom of the list.   This likely is indicative of the inability of Filene’s to obtain or maintain trade credit for inventory .   After two prior trips with Filene’s to bankruptcy court, not too many credit managers would have been anxious to take any substantial credit risk.

Filene’s reliance of “landlord lending” also is indicative of Filene’s decision to liquidate.  Once the liquidation option became the fait accompli, the landlords became the involuntary lenders of choice.

Filene’s List of its 20 Largest Unsecured Creditors

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Syms’ List of its 20 Largest Unsecured Creditors

Bankruptcy Rule 1007(d) provides that a debtor shall file “a list containing the name, address and claim of the creditors that hold the 20 largest unsecured claims… .” Fed. R. Bankr. P. 1007(d). The list does not include: (1) persons who come within the definition of “insider”); or (2) secured creditors, unless the value of the collateral is such that the unsecured deficiency places the creditor among the holders of the largest unsecured claims.

The Top Unsecured Creditor List is never to be considered a waiver of any defense to or “allowability” of a listed claim or an admission of the amount of any listed claim. It is common for the amount of the claims to shift and sometimes a claim that is initially is undisputed is later disputed. Creditors should always consult the official claims register.