July 17, 2008
Landsource DIP Financing of $1 Billion is Denied
According to troubledcompanyreporter.com, the Bankruptcy Court in Delaware, Judge Kevin Carey, denied a motion to approve DIP Financing for Landsource based in part on the objection of the unsecured creditors committee, represented by Laura Jones of the Pachulski, Stang firm. In the course of an eight hour hearing, Jones argued that the proposal was "simply an attempted asset/leverage grab" by the lenders. "The Debtors' contention that rolling $1 billion in prepetition debt into an administrative claim is necessary as 'adequate protection' for the First Lien Lenders under these
circumstances is absurd on its face." The Troubled Company news report can be found here.
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