American court hearing recordings and interviews - Listen to the Saks bankruptcy court hearing of May 18, 2026

Episode Date: May 19, 2026

hearing on approval of sealed proposed settlement agreement between Saks and its largest landlord Simon Property Group to resolve litigation

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That's how we keep track of formal appearances. But why don't we get appearances of counsel on the phone? Hi, good morning, Your Honor. Alison Smith, Wilkie Barne Gallagher, counsel to the Global Debtors. Good morning. Good morning, Your Honor. Dustin, Ms. Ball, Jerry Miller, and Megan Cahaw. of Sidley Austin for Simon's Property Group and its affiliates.

Good morning. Good morning, Your Honor. It's Raff Gordioli of Morrison and Forcer on behalf of the official committee on secure creditors. Good morning. Good morning, Your Honor, Shane Johnson from Porter Hedges on behalf of the ad hoc group of secured note holders and dick lenders. Morning. All right. Anyone else wish to make an appearance?

All right, you may proceed. Thank you, Your Honor. Again, for the record, Allison P.S. will be far and Gallagher, counsel for the global debtors. As you said, we are here today seeking approval of the settlement reached between FACS and its largest landlord, sign and properties. And again, I did want to thank the court for its patience and flexibility over recent weeks and months to say that this is a hard-bought negotiation is quite an understatement. But I'm happy to report that we were able to reach resolution and not aware of any objections to the motion and settlement.

So we are here on a consensual basis. I'll stay fairly high level as to the terms of the settlement entry in the D. Digit conference code. It's commercially sensitive nature of the agreement. But it does provide for the assumption of 29 leases, seven of which on amended terms and termination of 34 leases. In addition to pending the termination litigation, excuse me, in addition to resolving the pending termination litigation, it also preserves the relationship with, again, fact,

largest landlord as a result of the amendments to go forward lease portfolio that are lines with the go forward business plan of reorganized SACs. It includes restructured economic terms including certain capital expenditure contributions as well as certain amended lease duration. Additionally it does reject a food services agreement as one of the terminated leases at the Walt Whitman lease. That counterparty to that agreement was served notice overnight. We have a certificate of service on file at docket number 2294.

And apologies, Your Honor. I am remiss. We also have a declaration of Mr. Mark Weinston. That was a C to the field motion. Mr. Weinston is available on the virtual hearing this morning, should you have any questions. But again, believe we're here on a full consensual basis.

And I'm happy to go into further detail or as much detail as I'm able, given that the document was sealed. But perhaps I'll pause there and see if Your Honor has any questions. I really don't have any questions. I did review the motion and it seemed to resolve a lot of issues. But let me hear from SACS and then I'll hear from anyone else. Your Honor, the only thing Sacks would add is that, excuse me, the Fund and Property Group would add,

it's very happy with the long-term rights negotiated here. in which is the SACS global debtors, every success and efficient and planned confirmation, effective date and exit here. All right, thank you. Mr. Farioli or Mr. Johnson. Good morning, Your Honor. Just for the record, Rappes Farioli of Norris and Forcer

on behalf of the committee. We certainly commend the parties, Sacks, entering into a settlement with its largest landlord. The settlement certainly provides some benefits to the debtors and go forward business, so we are not standing in the way of that this morning. However, there is a global settlement among the debtors, the ad hoc group and the committee. There's a term sheet appended to the disclosure statements at Exhibit H that requires the committee's consent to any settlement that releases parties from the state claims and causes of action.

The committee has not yet consented, and is one of the committee has not yet consented, and is reviewing the signing settlement and turns in the context and against the backdrop of that global deal. And I arrived this morning just to note that for your honor and to state that the committee reserves all rights. Thank you. All right. All right. So, again, I reviewed the settlement as well as the declaration from Mr. Weinstein. And obviously, you know, we spent a lot of time litigating this issue.

The court spent a lot of time. draft, you know, starting to draft an opinion on the issue. And I think this is an appropriate and resolution. I think the debtor has exercised its business judgment appropriately in reaching this settlement. And really, in my mind, resolving a potential significant roadblock to confirmation or at least confirmation with the business plan that the debt of the debtor's choosing so I'm going to go ahead and approve the settlement just give me a minute and I will also find that based on the significant commercial sensitivity to the settlement the having filed the commercial terms

under seal as appropriate under the circumstances and permitted by the rules thank you all right that's been signed and sent to docketing. Thank you, Your Honor. If you'll permit, I did have two other small items just to check in about. Sure. One, the adjustment period for our motion seeking approval of the minimum settlement procedures expires today. We are in conversations with a couple of parties regarding informal comments,

so I do just want to alert the court that we will be submitting a COC and ask that you hold on entering that until we're able to do so. additionally the two leaf assignment transactions that were approved last week I believe both of those are on file now under COC at 2275 and 2293 so I just wanted to confirm that your honor did not need anything else come up on that and make sure that you didn't have any questions about those 2275 and 22 22 75 and 22 93 I thought I had entered does but I'll check we'll check we'll check as well your honor it's possible we missed but I thought it's at this morning they were yet unentered yeah so they were on

Wednesday I thought I had entered everything but we'll check thank you very much your honor all right anything further thank you honor all right we'll be at recess till nine o'clock thank you all