L Brands Risk Arb Play Dead?

[wescobrk]

Any risk arbs have a good background in "ordinary course covenant?"

If so, do you think the L Brands deal will go through? The shares dropped more than 20% today.

PE firm buying it is arguing L Brands violated that clause when it closed stores due to Covid. L Brands is arguing its behavior is consistent with other businesses due to the pandemic.

[Gregmal]

No insight on the merger but a scumbag move by a scumbag firm. Do we give everyone a mulligan on stocks they bought in January/February? They made a move they now regret and are trying to weasel out. Hopefully a judge sees this and makes them pay.

[wescobrk]

I bought a small amount near the intraday low in case the judge does enforce it.

Agreed about it being a scumbag move.