Oaktree Capital Management is racing to raise $1.5bn (£1.18bn) to bid for bankrupt accessories chain Claire's Stores.
The bid, which will be entered by 31 August, will rival a $1.4bn debt-for-equity bid by senior lenders Elliot Management Corporation and Apollo Global Management.
Oaktree's cash raising plan was revealed during a hearing at Delaware U.S. Bankruptcy Court by White & Case lawyer Tom Lauria who is representing the investment firm in the Claire’s proceedings.
The pre-teen jewellery retailer filed for Chapter 11 bankruptcy protection in the US in March this year, and said it expects to complete the process by the end of next month.
International subsidiaries are not part of the U.S. bankruptcy filings, the brand said earlier this year.
The beleaguered retailer was bought by private equity firm Apollo Global Management for $3.1bn in 2007.