UBS AG is defending Lenox Group Incorporated's decision to pick an outside buyer for its assets rather than a group of its lenders, calling the lenders' efforts to hold up the sale of the china and dinnerware maker's assets nothing more than "sour grapes." The leader of a group of Lenox's prebankruptcy lenders, Bank of New York Mellon, is urging the U.S. Bankruptcy Court in Manhattan to block the sale of Lenox's assets to a unit of private equity firm KPS Capital Partners LP. The bank says in court papers that Lenox unfairly disqualified its bid, which the bank insists was truly the better offer. According to Lenox, Bank of New York's bid was disqualified because it couldn't prove it was financially able to close a deal. UBS, which provided Lenox's $85 million bankruptcy loan, chalked up the bank's objection to its own shortcomings.
DOW JONES NEWS WIRES