Ironclad Performance Wear’s official committee of unsecured creditors filed with the U.S. Bankruptcy Court an objection to the Debtors’ post-petition financing motion.
The committee asserts, “The Debtors apparently believe that the DIP Loan is necessary and the terms provided by Radians are preferable to a contested cash collateral request. While the Committee supports the Debtor’s request, the Committee is concerned that some of the terms of the proposed DIP Loan favor Radians-The DIP Lender and stalking horde bidder – and pose a significant risk of diminishing or even eliminating unsecured creditor recoveries.”
In addition, “Much of the Committee’s trepidation stems from the extraordinary powers Radians seeks from this Court; namely the authority to terminate the automatic stay to pursue far-reaching remedies following an Event of Default under the DIP Loan Agreement.”
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