Real Industry’s ad hoc equity security holders’ committee filed with the U.S. Bankruptcy Court an objection to the Company’s post-petition financing motion.
The committee asserts, “This Objection relates to the revised DIP Order approving the increased obligations and the failure to provide for appropriate oversight by and for the parties in interest in the Real Industry case in the revised DIP order. This was a concern raised at the hearing. The Debtor has given notice and ceded certain oversight of the transactions in the DIP Order solely to the Real Alloy creditors and Creditors’ Committee, none of which have an interest in the Real Industry assets, financing or restructuring….The petitions for Real Industry parent company and the Real Alloy operating entities were each filed with the same consolidated list of creditors–none of which are creditors of Real Industry.”
In addition, “Moreover, the revised DIP Order treats the Creditors’ Committee as the only legitimate representative of Real Industry’s estate interests….The Ad Hoc Committee requests that the Debtor makes the following changes to the DIP Order: (a) the reference to the appointment of the Creditors’ Committee formation and retention of professional in the Recitals should be deleted; (b) the carve out should apply only to committee appointed in the Real Industry cases or acting solely for the constituents of Real Industry; (c) all notices required to be given to the Borrower should be given to a committee appointed in the Real Industry cases; (d) future notice should be given to Real Industry equity holders as the Court directs pursuant to Federal Rule of Bankruptcy Procedure 2002(d); (e) no funds from the Real Industry DIP can be used to pay restructuring costs of the Real Alloy debtors.”
Read more bankruptcy news.
The post Real Industry Bankruptcy Objection Filed appeared first on Daily Bankrupt Company Updates | Bankrupt Company News.