There were objections to Belk's swift bankruptcy filing, according to a Retail Dive article.
"The U.S. trustee in the case objected to the brisk pace. "The process here sharply deviates from the Bankruptcy Code's qualified and carefully crafted authorization of pre-packaged bankruptcy plans," the trustee, Kevin Epstein, said in court papers, who argued the speed did not provide enough sufficient notice to creditors. Epstein also objected to third-party releases of legal liability included in the plan.
"First, the nearly full-page, one-paragraph, single-spaced release starts with a 630-word sentence with 92 commas and five parentheticals. It is, simply put, unintelligible," the trustee said, adding that to "assert that tens of thousands of creditors have consented to a release that someone with a law degree would struggle to understand and that a creditor without legal training could not be expected to comprehend, eviscerates any meaning of the word consent."
A judge with federal district court in Houston found both the notice and releases were sufficient and consistent with the bankruptcy code."
The article also stated that Belk would have faced liquidation if the bankruptcy had not been pushed through swiftly.