A’Gaci lender Bank of America objects to cash collateral use request

By Caroline Salls

Pittsburgh, Jan. 11 – A’Gaci, LLC lender Bank of America, NA objected to the company’s proposed use of the bank’s cash collateral to fund its operations while in bankruptcy, according to a January 10 filing with the U.S. Bankruptcy Court for the Western District of Texas.

Bank of America said it reserved the right to exercise setoff rights in connection with defaults “and expects to promptly seek relief from the automatic stay or for adequate protection to assert such remedies.”

In addition, the lender said it placed a temporary administrative freeze on withdrawals from 20 A’Gaci accounts, pending its ability to exercise setoff and/or recoupment rights on those accounts.

As a result, Bank of America said it objects to any aspect of the cash collateral motions that are inconsistent with its rights to administratively freeze the accounts or exercise setoff, recoupment or other rights upon court approval.

A’Gaci is a San Antonio, Texas-based fashion retailer. The company filed for bankruptcy on Jan. 9 under Chapter 11 case number 18-50049.

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