Debt investment firm Marble Ridge Capital sent a letter to the Neiman Marcus board of directors in light of the credit default swap market indicating a greater than 80% probability of default immediately following Neiman’s March 1st announcement of its “Final Proposal,” according to recent Bloomberg estimates.

Much of the tension between Neiman Marcus and Marble Ridge stems from the retailer’s transfer of the MyTheresa business to its European subsidiaries, which Marble Ridge believes was done deliberately to protect it from domestic creditors. The “Final Proposal” was meant to address some of the unresolved issues stemming from the MyTheresa move.

The letter accuses the Neiman Marcus board of creating perverse incentives for securities holders to benefit from the company’s failure.

The letter subsequently demands the board “must take corrective action and undo this devil’s bargain to ensure that no one stands to benefit from the company’s failure, return 100% of the valuable MyTheresa assets to the company [and] appoint a separate and independent governing body that is capable of making independent decisions affecting the company in order to remove the pervasive conflicts of interest that have enabled a massive stripping of assets.”