In what some are calling the next shoe to drop in securitization land, apparently The Spiegel Group now joins the ranks of NextCard, in that both entities have outstanding securitizations that are still revolving despite having allegedly hit early amortization triggers.

Though the circumstances are quite different, the precedent could be unnerving, sources said, as some of the basic structural tenets of securitization are apparently open for debate. As for Spiegel, the company has effectively postoned the early amortization of two of its private label credit card securitizations from the Spiegel Master Trust (SPMT 2000-A and SPMT 2001-A). On April 11, a court awarded the struggling retailer a temporary restraining order against MBIA and The Bank of New York, one day after MBIA informed Spiegel it would ask BNY (the trustee) to begin winding down the securitizations. The parties were scheduled to meet in court again on May 3 for a second hearing, although that has been postponed.

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