Invictus Global Management Issues Open Letter to Fellow Creditors of Tuesday Morning Corporation

Asserts That Tuesday Morning’s Currently Proposed Reorganization Plan Deprives Class 5 General Unsecured Creditors of a Substantial Amount of Post-Petition Interest

Highlights That the Current Plan Provides a Mere 0.16% of Post-Petition Interest at the Federal Judgment Rate, but Creditors Could be Legally Entitled to 5%-18% Under Contract or State Rates

Urges Fellow Creditors to NOT Cast Their Irrevocable Vote on the Plan Before Considering the Invictus Position

AUSTIN, Texas--()--Invictus Global Management, LLC (together with its affiliates, “Invictus” or “we”), which is a member of the Trade Claimants Committee that filed an objection to the proposed plan of reorganization (the “Reorganization Plan”) of Tuesday Morning Corporation’s (OTC: TUESQ) (“Tuesday Morning” or the “Company”) on November 25, 2020, today issued the below open letter to its fellow creditors. Creditors can visit to view the full objection.

Dear Fellow Class 5 General Unsecured Creditor,

Invictus Global Management (together with its affiliates, “Invictus” or “we”) is a Texas-based firm that provides capital to struggling companies seeking to restructure their debts and pursue turnarounds. We take pride in seeing companies, particularly those based in Texas, return to growth and succeed following difficult periods. When we are asked to support bankruptcy exit plans, we almost always vote “YES” as long as we are treated equitably and fairly.

Unfortunately, Invictus and other major claim holders of Tuesday Morning Corporation (OTC: TUESQ) (“Tuesday Morning” or the “Company”) recently felt compelled to object to the Company’s proposed Reorganization Plan. As noted in our objection, the current version of the Reorganization Plan deprives creditors – such as you and us – of a material amount of post-petition interest. Fortunately, creditors have the opportunity to reject this version.

We intend to vote REJECT the current Reorganization Plan and OPT OUT of the Third-Party Releases for two primary reasons:

  1. Creditors would surrender a significant amount of money. Tuesday Morning is trying to provide creditors a mere 0.16% in the form of post-petition interest at the federal judgment rate on the petition date, whereas creditors may be entitled to between 5% and 18% under contract or state rates under the solvent-debtor exception.1 This could mean forgoing thousands of dollars in potential interest that Tuesday Morning can afford to pay and will be legally required to disburse if sufficient creditors REJECT the present plan iteration. If enough creditors REJECT the Reorganization Plan, we believe Tuesday Morning will need to satisfy its obligations under the solvent-debtor exception that would require the Company to pay its creditors in full before recovering any surplus.2 Here, payment in full means getting 100% in cash + post-petition interest of 5% to 18%.
  2. Creditors would be waiving key safeguards. Tuesday Morning apparently wants creditors to waive safeguards of the Bankruptcy Code and provide stockholders with a windfall to the detriment of general unsecured creditors. This flies in the face of bankruptcy precedent and the fact that creditors are senior in the priority chain to equity holders. The Company is also trying to play games by pegging the federal judgment rate to an uncharacteristically low rate as of the petition date to undercompensate creditors even though it possesses sufficient capital.

Our hope is that all creditors view this letter and our objection as useful resources when independently determining how to vote. If you agree with our assessment, we encourage you to REJECT the current Reorganization Plan and OPT OUT of Third-Party Releases in order to protect your interests. Please consider the following as you consider the information being provided to you:

  • Your vote is irrevocable. Do not vote until you have made a final decision.
  • Voting to REJECT the current Reorganization Plan will not jeopardize your ability to be paid what Tuesday Morning owes you. It will merely provide you all of the money you are entitled to.
  • You can cast your vote via the E-Ballot hosted at the following link: You will need your Unique E-Ballot ID#, which appears on your ballot, in order to vote.

Please reach out to our representatives at if you have questions about how to REJECT the current Reorganization Plan.


Amit P. Patel

Managing Partner

Cindy Chen Delano


1 See Tex. Fin. Code §§ 304.002-304.003.
2 Invictus finds it disingenuous that Tuesday Morning arbitrarily selected the Petition Date as the trigger date for the federal judgment interest rate. Currently, the federal judgment interest rate is 2.59%. The date arbitrarily selected by Debtors was in the height of the global pandemic and at a point in time when the federal judgment rate was uncharacteristically low.


Saratoga Proxy Consulting
John Ferguson / Joe Mills, 212-257-1311 /


Saratoga Proxy Consulting
John Ferguson / Joe Mills, 212-257-1311 /