Capital factors brought the suit against Kmart. Capital was mad that they were not classified as a critical vendor by Kmart. I believe Kmart owed them approx. 20 to 40 Million. Capital has challenged the critical vendor issue in court and won.
You can read about it on the US Court of Appeals 7th District website: www.ca7.uscourts.gov Case 03-1956
I assume AGT/Kohlberg sure will have to pay back money. Don't know how much though. This could be the "big straw". Don't know though for sure.